Current total market value-weighted average cost of capital

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The Anson Jackson Court Company (AJC) currently has $250,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. AJC's current cost of equity is 1.00%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00.

What is AJC's current total market value and weighted average cost of capital?

Reference no: EM132046970

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