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What is the company wacc for cleen power co

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Reference no: EM132768550

You are given the following information for Cleen Power Co. Assume the company's tax rate is 30 percent.

Debt:

9,000 6.4 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 107 percent of par; the bonds make semiannual payments.

Common stock:

360,000 shares outstanding, selling for $54 per share; the beta is 1.10.

Market:

11 percent market risk premium and 4.4 percent risk-free rate.

Problem 1: What is the company's WACC?

Reference no: EM132768550

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