MC Qu. 14-A5 Jack s Construction Co. has…

Jack's Construction Co. has 100,000 bonds outstanding that are selling at par value. The bonds yield 9.3 percent. The company also has 3.8 million shares of common stock outstanding. The stock has a beta of 1.9 and sells for $60 a share. The U.S. Treasury bill is yielding 6 percent and the market risk premium is 9 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?
16.06 percent
14.21 percent
17.90 percent
21.26 percent
8.95 percent


Looking for a Similar Assignment? Hire our Top Techical Tutors while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15