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Jonas Brothers is estimating its WACC. The company has collected the following information: - Its capital structure consists of 35 percent debt and 65 percent
Jonas Brothers is estimating its WACC. The company has collected the following information: - Its capital structure consists of 35 percent debt and 65 percent common equity. - The company has 20 -year bonds outstanding with a 8 percent annual coupon that are trading at par. - The company's tax rate is 29 percent. - The risk-free rate is 5.4 percent. - The market risk rate is 7 percent. - The stock's beta is 1.2. What is the company's WACC
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