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Assume JBH has debt with a book value of $ 2 0 million, trading at 1 2 0 % of par value. The bonds have

Assume JBH has debt with a book value of $20 million, trading at 120% of par value. The bonds have a yield to maturity of 6%. The firm has book equity of $20 million, and 2 million shares trading at $18 per share. The firms cost of equity is 12%. What is JBHs WACC if the firms marginal tax rate is 30%?
a.
9.60%
b.
6.24%
c.
8.88%
d.
9.00%

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