Compute the weighted-average cost of capital

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Reference no: EM132796762

The following data pertain to Jumar Manufacturing:

Interest rate on debt capital 9%

Cost of equity capital 12%

Before-tax operating income P35M

Market value of debt capital P60M

Market value of equity capital P120M

Total assets P150M

Income tax rate 30%

Total current liabilities P15M

Problem 1: Compute the weighted-average cost of capital.

Reference no: EM132796762

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