Problem:
Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The bonds have a yield to maturity of 7%. The firm's book value of equity is $16 million, and it has 2 million shares trading at $19 per share. The firm's cost of equity is 12%.
Required:
Question 1: What is JUP's WACC if the firm's marginal tax rate is 35%?
Note: Please provide full description.