Question: please I'm a slow learner. pretty Please Show step-by-step solution answer is 12.47% BUSI 4500 In class exercise Cost of Capital 1. Lumber Jack Log

please I'm a slow learner. pretty Please Show step-by-step solution

please I'm a slow learner. pretty Please Show step-by-step solution answer is

answer is 12.47%

BUSI 4500 In class exercise Cost of Capital 1. Lumber Jack Log Homes has 30,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.8 percent. The company also has 1.5 million shares of common stock outstanding. The stock has a beta of 1.4 and sells for s36 a share. Treasury bills are yielding 4.5 percent and the market risk premium is 8.6 percent. Jack's tax rate is 34 percent. What is Jack's weighted average cost of capital? 2.47

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