Suppose that jb cos has a capital structure of 78 percent, Ask an Expert

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Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 12 percent while its cost of equity is 16 percent. Assume the appropriate weighted-average tax rate is 25 percent. What will be JB’s WACC? (Round your answer to 2 decimal places.)

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Financial Management, Finance

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