Question
JCPenny is currently trading at $53 per share and has 11.2 million shares outstanding. The store has estimated the expected rate of return to shareholders
JCPenny is currently trading at $53 per share and has 11.2 million shares outstanding. The store has estimated the expected rate of return to shareholders at about 12%. It has also an outstanding long-term debt of $190 million with a yield of 9%. Assume a marginal rate of 35%.
What is JCPennys after-tax WACC?
| 10.00% | ||
| 10.25% | ||
| 10.50% | ||
| 10.75% | ||
| 11.00% | ||
| 11.25% |
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