Question
Johansen Corporation has a target capital structure of 80 percent common stock and 20 percent debt. Its costs of equity is 15 percent, and the
Johansen Corporation has a target capital structure of 80 percent common stock and 20 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 percent. The relevant tax rate is 35 percent.
What is the companys WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places)
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard
3rd Edition
0324118945, 9780324118940
