Question
Fill in the blanks in the table below to calculate JO's WACC if the new product line is introduced. $ (in millions, e.g., 5.00 for
Fill in the blanks in the table below to calculate JO's WACC if the new product line is introduced. $ (in millions, e.g., 5.00 for 5 million) Weight in % (e.g., 2.00 for 2%) Pre-tax cost of capital in % (e.g., 3.00 for 3%) after-tax cost of capital % (e.g., 4.00 for 4% after tax weighted cost of capital in % (e.g., 6.00 for 6%) Debt b. $ 4.00 e. 27.67 5.00 g. 3.75 i. Ordinary shares c. $ 11.00 f. 73.33 h. 12 j. Total d. $ 15.00 100.00 k. WACC = 30.00 Case sensitive: Where appropriate, type in 21.00 for 21.00%, or 2,000,000 for $2,000,000.12 (rounded to the nearest dollar)
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