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1. Calculating Cost of Equity The Swanson Corporation's common stock has a beta of 1.07....

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1. Calculating Cost of Equity The Swanson Corporation's common stock has a beta of 1.07. If the risk-free rate is 3.4 percent and the expected return on the market is 11 percent, what is the company's cost of equity capital? 1. Finding the WACC Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debr: 20,0005.1 percent coupon bonds outstanding. $2,000 par value, 20 years to maturity, selling for 105 percent of par: the bonds make semiannual payments. Common stock: 900,000 shares outstanding, selling for $77 per share; the beta is, 95 . Market: 7 percent market risk premium and 3.5 percent risk-free rate

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