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JLP Industries has 6.8 million shares of commo...




JLP Industries has 6.8 million shares of common stock outstanding with a market price of $13 per share. The company also has outstanding preferred stock with a market value of $11.0 million, and 19,000 bonds outstanding, each with a face value of $1,000 and selling at 92 percent of par value. The cost of equity is 14.4 percent, the cost of preferred is 10.1 percent, and the cost of debt is 7.25 percent. Required: If JLP's tax rate is 35 percent, what is the WACC? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)


Paper#7292 | Written in 18-Jul-2015

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