Solution-Calculate JHM Corporation cost of equity

Calculate JHM Corporation cost of equity

Reference no: EM132617246

Question - Calculate JHM Corporation's cost of equity (RE) and cost of debt (RD).

Common stock: 2 million shares outstanding, market value of $30 per share, and Beta = 1.5.

Market risk premium 7%, risk free rate 5%.

Tax rate: 34%Bonds: 80,000 bonds outstanding, $1,000 face value per bond, 7% annual coupon, and 10 years to maturity. Selling at 108.25% of face value.

Reference no: EM132617246

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Calculate JHM Corporation cost of equity

Reference no: EM132617246

Reference no: EM132617246

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