Question: Problem 11-16 WACC (LG11-2) Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of

Problem 11-16 WACC (LG11-2) Suppose that JB Cos. has a capital

Problem 11-16 WACC (LG11-2) Suppose that JB Cos. has a capital structure of 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 14 percent while its cost of equity is 18 percent. Assume the appropriate weighted average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.) WACC %

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