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Question 2 on WACC The corporate tax rate paid by Blue Jackets Inc. (BJI) is 25 percent. The risk-free rate is 3 percent. BJI has
Question 2 on WACC The corporate tax rate paid by Blue Jackets Inc. (BJI) is 25 percent. The risk-free rate is 3 percent. BJI has $150MM in equity and it has borrowed $30MM that the market perceives as risk-free. BJI also has $10MM in cash on hand. The expected return to BJI's equity is 8 percent. What is the weighted average cost of capital for BJI
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