Question
Calculating WACC Johansen Corporation has a target capital structure of 75 percent common stock and 25 percent debt. Its cost of equity is 12.1 percent,
Calculating WACC Johansen Corporation has a target capital structure of 75 percent common stock and 25 percent debt. Its cost of equity is 12.1 percent, and the cost of debt is 6.3 percent. The relevant tax rate is 35 percent. What is the companys WACC? (Show your work)
| Common Stock weight | 75% |
| Debt weight | 25% |
| Cost of Equity | 12.10% |
| Cost of Debt | 6.30% |
| Tax Rate | 35% |
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The Evolution Of Nordic Finance
Authors: Steffen Elkiær Andersen
2011th Edition
0230241557, 978-0230241558
