Johnson Limited is 60% financed by risk-free debt with an interest rate of 5%.The expected market risk
Fantastic news! We've Found the answer you've been seeking!
Question:
Johnson Limited is 60% financed by risk-free debt with an interest rate of 5%. The expected market risk premium is 6% and the Beta for Johnson Limited stock is 0.40. What is Johnson Limited's after-tax WACC, assuming the company pays taxes at a rate of 21%?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date: