Calculate weighted average cost of capital for given data


Johnson enterprise has a capital structure of 50% bonds, 30% preferred stock, and 20% common equity stock. Their corporate tax rate is 35%. They pay the bond holders 12%. They pay the preferred stock holders 7%. The common stock holders receive 18%. Calculate the WACC.

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Finance Basics: Calculate weighted average cost of capital for given data
Reference No:- TGS056455

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