Question
Suppose that JB Cos. has a capital structure of 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 11 percent
| Suppose that JB Cos. has a capital structure of 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weighted-average tax rate is 25 percent. |
| What will be JBs WACC? (Round your answer to 2 decimal places.) |
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
