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Jubawdit Inc. is a U.S based multinational corporation. The capital structure of this company consists of 65 percent of debt with an interest rate of
Jubawdit Inc. is a U.S based multinational corporation. The capital structure of this company consists of 65 percent of debt with an interest rate of 21%. Jubawdit stock has a beta of 1.45 and the market return is expected to be at 9%. The risk-free rate is 3% and the corporate tax rate is 30%. What is the weighted average cost of capital (WACC) of Jubawdit Inc?
a. 13.65%
b. 11.70%
c. 12.75%
d. 17.75%
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