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Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 10 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 10 percent while its cost of equity is 14 percent. Assume the appropriate weighted-average tax rate is 25 percent.

What will be JBs WACC?

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