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Assume JUP has debt with a book value of $16 million, trading at 120% of par value. The bonds have a yield to maturity of

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Assume JUP has debt with a book value of $16 million, trading at 120% of par value. The bonds have a yield to maturity of 7%. The firm has book equity of $18 million, and 2 million shares trading at $18 per share. The firm's cost of equity is 10%. What is JUP's WACC if the firm's marginal tax rate is 40%? A. 8.38% B. 8.78% C. 6.39% D. 7.98%

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