Company stock sells at book value

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Reference no: EM131322556

Jonkin and CO's before tax cost of debt is 9%, its marginal tax rate is 34%, and its cost of equity is 14%. The company's stock sells at book value, and it has just published its most recent balance sheet below:

Calculate Jonkin's weighted average cost of capital(WACC):

Assets: Liabilities:

Cash $120 Long Term Debt $1152

Accounts Reciavable $240 Common equity $1728

Net fixed Assets $2880 Total Liabilites and Equity $2880

Total Assets $2880

Reference no: EM131322556

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