Multiple Choice
JAK Industries has 5 million shares of stock outstanding selling at $25 per share and an issue of $40 million in 8 percent, annual coupon bonds with a maturity of 15 years, selling at 108 percent of par ($1,000) . If JAK's weighted average tax rate is 21 percent and its cost of equity is 15 percent, what is JAK's WACC?
A) 9.19 percent
B) 12.59 percent
C) 12.50 percent
D) 12.77 percent
Correct Answer:
Verified
Correct Answer:
Verified
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