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Consider the following information for Federated Junkyards of America. - Debt: $74,000,000 book value outstanding. The debt is trading at 90% of book value. The
Consider the following information for Federated Junkyards of America. - Debt: $74,000,000 book value outstanding. The debt is trading at 90% of book value. The yield to maturity is 10%. - Equity: 2,400,000 shares selling at $41 per share. Assume the expected rate of return on Federated's stock is 19%. - Taxes: Federated's marginal tax rate is Tc=0.21. Calculate the weighted-average cost of capital (WACC). Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
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