Suppose that JB Cos has a capital structure of 78 percent equity, 22 percent debt, and its before tax cost of debt is 11 percent while its cost of...
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Suppose that JB Cos has a capital structure of 78 percent equity, 22 percent debt, and its before tax cost of debt

is 11 percent while its cost of equity is 15 percent. If the appropriate weighted average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield, what will be JB's WACC?

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