WACC Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and

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WACC Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. If the appropriate weighted-average tax rate is 25 percent, what will be JB's WACC? (LG2)

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Finance Applications And Theory

ISBN: 9780073530673

2nd Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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