The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $89,000, and it is a zero growth company. AJC's current cost of equity is 10%, and its tax rate is 25%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00.  Refer to the data for the Anson Jackson Court Company (AJC). 

a). What is AJC's current total market value and weighted average cost of capital? 

b). Total Market Value; WACC

Answer rating: 100% (QA)

A Total market value of AJC company Market value of company Market value refers to the price at whic... View the full answer