What is the company weighted average cost of capital

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Reference no: EM13975151

Johnson Industries finance its project with 40% debt and 60% common stock.

The company can issue a bond at the yield of 8.4%.

The risk free rate is 6.57%.

The market risk premium is 5%.

Johnson Industries beta is 1.3.

The company’s tax rate is 30%.

What is the company’s weighted average cost of capital?

Reference no: EM13975151

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