Johnson Company has a target capital structure of 60% equity and 40% debt.Johnson Company currently has 6.5%

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Johnson Company has a target capital structure of 60% equity and 40% debt.Johnson Company currently has 6.5% coupon bonds (with annual coupon payments) outstanding with a par value of $1,000 and 20 years left until maturity that are currently selling for $990.In addition, Johnson Company's equity beta is .9, the risk free rate is 1.5 percent, and the market risk premium is 4 percent.What is the WACC for Johnson Company if the appropriate tax rate is 20 percent?

Posted Date: May 13, 2024 02:38 AM

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Johnson Company has a target capital structure of 60% equity and 40% debt.Johnson Company currently has 6.5%

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