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I need help solving this problem Suppose that JB Cos. has a capital structure of 80 percent equity, 20 percent debt, and that its before-tax
I need help solving this problem
Suppose that JB Cos. has a capital structure of 80 percent equity, 20 percent debt, and that its before-tax cost of debt is 14 percent while its cost of equity is 18 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.) Step by Step Solution
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