Service

Chat Now

Construction Co. has 70,000 bonds outstanding that are selling at par value. The bonds yie

Construction Co. has 70,000 bonds outstanding that are selling at par value. The bonds yie

Construction Co. has 70,000 bonds outstanding that are selling at par value. The bonds yield 7 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1 and sells for $30 a share. The U.S. Treasury bill is yielding 3 percent and the market risk premium is 6 percent. Jack's tax rate is 34 percent. What is Jack's weighted average cost of capital?

7.39 percent

8.38 percent

4.40 percent

4.11 percent

7.66 percent

Abhinav 04-Dec-2019

Answer (UnSolved)

question Get solution