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The following information applies to the next three questions. Johnson and Johnson Corporation has a target capital structure that consists of 40% debt and 60%
The following information applies to the next three questions. Johnson and Johnson Corporation has a target capital structure that consists of 40% debt and 60% equity and their tax rate is 40%, and they can borrow at an interest rate of 10%. The cost of equity for Johnson is estimated to be around 18%. Set your decimal places to 4 in your financial calculator. What is Johnson and Johnson's cost of debt after tax? 18.00% 10.0096 6.0096 4.0096 QUESTION 99 The following information applies to the next two questions (which is a continuation of the previous question). Johnson and Johnson Corporation has a target capital structure that consists of 40% debt and 60% equity and their tax rate is 40%, and they can borrow at an interest rate of 10%. The cost of equity for Johnson is estimated to be around 18%. Set your decimal places to 4 in your financial calculator. What is Johnson and Johnson's overall weighted average cost of capital? 14.80% 13.209 12.9896 9.6096
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