Question
Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 11 percent
| Suppose that JB Cos. has a capital structure of 75 percent equity, 25 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.) |
| WACC | % |
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
