Question: 13 Based on the information given below, calculate Jells weighted average cost of capital (WACC). Long-term debt as a percent of total capital at market

13

Based on the information given below, calculate Jells weighted average cost of capital (WACC).

Long-term debt as a percent of total capital at market value 40%
Tax rate 30%
Cost of Equity: CAPM estimate 10%
Yield to maturity (YTM) of Jells long-term bond 6%

Select one:

a.

8.40%

b.

3.40%

c.

10.68%

d.

7.68%

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