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Author Question: Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with ... (Read 94 times)

Beheh

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on: Apr 25, 2021
Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 8 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?
◦ 7.10 percent
◦ 7.39 percent
◦ 10.38 percent
◦ 10.65 percent
◦ 11.37 percent
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Beheh on Apr 25, 2021

T4T

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Beheh

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

cassie_ragen

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Reply 3 on: Yesterday
Excellent

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