You are given the following information for Tara Ita Power Co. Assume the company’s tax rate is 22 percent.   Debt: 5,000 6.6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 109 percent of par; the bonds make semiannual payments.     Common stock: 380,000 shares outstanding, selling for $56 per share; the beta is 1.12.     Market: 5 percent market risk premium and 4.6 percent risk-free rate.   What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You are given the following information for Tara Ita Power Co. Assume the company’s tax rate is 22 percent.
 
Debt: 5,000 6.6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 109 percent of par; the bonds make semiannual payments.
   
Common stock: 380,000 shares outstanding, selling for $56 per share; the beta is 1.12.
   
Market: 5 percent market risk premium and 4.6 percent risk-free rate.

 

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