Question
Suppose JNJ has just retired all of its debt and wishes to re-calculate its WACC. The new beta for JNJ is .5, the risk free
Suppose JNJ has just retired all of its debt and wishes to re-calculate its WACC. The new beta for JNJ is .5, the risk free rate is 4% and the market risk premium is 7%. Since JNJ no longer has any debt its capital structure is 100% equity. JNJs new WACC is _____%.
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Personal Finance Turning Money Into Wealth
Authors: Arthur J Keown
5th Edition
0136070620, 9780136070627
