Appropriate weighted-average tax rate

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Suppose that JB Cos. has a capital structure of 76 percent equity, 24 percent debt, and that its before-tax cost of debt is 12 percent while its cost of equity is 16 percent. Assume the appropriate weighted-average tax rate is 25 percent.

What will be JB's WACC? (Round your answer to 2 decimal places.)

Reference no: EM131709848

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