Finance

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Question

Information on Huffington Power Co. is shown below. Assume the company's tax rate is 33 percent. Debt: 5,500 5.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 103 percent of par
the bonds make semiannual payments. Common stock: 110,000 shares outstanding, selling for $58 per share
the beta is 1.15. Market: 6.5 percent market risk premium and 4 percent risk-free rate. The weighted average cost of capital is ____________ % (round answer to 2 decimal places) Jan 18 2014 10:47 PM

 

Solution ID:609082 | This paper was updated on 26-Nov-2015

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