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The JB Cos. has a capital structure of 78 percent equity, a 22 percent debt and the before-tax cost of debt is 11 percent, while
The JB Cos. has a capital structure of 78 percent equity, a 22 percent debt and the before-tax cost of debt is 11 percent, while its cost of equity is 15 percent. If the appropriate weighted-average tax rate is 25 percent, identify what JBs WACC will be.
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