What is Jack weighted average cost of capital

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Question - Zain Co. has 80,000 bonds outstanding that are selling at 1000$ per bond. Bonds with similar characteristics are yielding 8.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.5 and sells for $40 a share. The market free rate is 4% and the market risk premium is 8%. Jack's tax rate is 35%. What is Jack's weighted average cost of capital?

Reference no: EM132858751

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