Problem
Johnson Industries finances its project with 40% debt and 60% common stock.
The company can issue a bond at the yield of 8.4%.
The risk free rate is 6.57%.
The market risk premium is 5%.
Johnson Industries beta is 1.3.
The company's tax rate is 30%.
What is the company's weighted average cost of capital?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.