Assume the companys tax rate is 40 percent what is the


You are given the following information for Huntington Power Co.

Assume the company’s tax rate is 40 percent.

Debt: 8,000 7.5 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock: 470,000 shares outstanding, selling for $65 per share; the beta is 1.08.

Market: 8 percent market risk premium and 5.5 percent risk-free rate.

What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

WACC ____________ %

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Financial Management: Assume the companys tax rate is 40 percent what is the
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