Question
Assume JUP has debt with a book value of $18 million, trading at 120% of par value. The bonds have a yield to maturity of
Assume JUP has debt with a book value of $18 million, trading at 120% of par value. The bonds have a yield to maturity of 8%. The firm has book equity of $16 million, and 2 million shares trading at $20 per share. The firm's cost of equity is 12 %. What is JUP's WACC if the firm's marginal tax rate is 40%? A. 9.95% B. 7.58% C. 9.48% D. 10.42%
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
5th Edition
0910944008, 978-0910944007
