Question
Refer to Question 2. Now that Anna has determined an appropriate rate of return for J Corp.'s stock, she must calculate the firm's Weighted Average
Refer to Question 2. Now that Anna has determined an appropriate rate | ||||||
of return for J Corp.'s stock, she must calculate the firm's Weighted Average | ||||||
Cost of Capital (WACC). There are currently | 52.8 | Million | ||||
J Corp. common shares outstanding. Each share is currently priced at | ||||||
$17.68 | . As well, the firm has | 6,000 | bonds outstanding and each | |||
bond has a face value of $10,000, a yield to maturity of | 3.49% | and a | ||||
quoted price of | $10,149.50 | . J Corp.'s tax rate is 30%. | ||||
J Corp. has no preferred shares outstanding. | ||||||
What is J Corp.'s WACC? | Enter Answer | |||||
(Round your answer to one one-hundredth of a percent) | ||||||
Enter your Final Answer Here |
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FROM QUESTION 2:
BETA: 2.00
EXPECTED RATE OF RETURN: 13.4
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