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I need this in the next 30 minutes if anyone can help. jack's construction co. has 80 000 bonds outstanding that are selling at par
I need this in the next 30 minutes if anyone can help.
jack's construction co. has 80 000 bonds outstanding that are selling at par value. bonds with similar characteristics are yielding 8.6 percent. the company also has 4 million shares of common stock outstanding. the stock has a beta of 1.1 and sells for $40 a share. the us treasury bill is yielding 4 percent and the market risk premium is 8 percent. jacks tax rate is 34 percent. what is jacks weighted average cost of capital?
a. 10.65%
b. 11.47%
c. 10.10%
d. 10.43%
e. 11.39%
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