What is tnjs weighted average cost of capital

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Question: TNJ Corporation has 100000 common shares outstanding with a market value of $25 per share, and a cost of equity of capital of 12%. TNJ also has a total face value of $1902000 in zero-coupon bonds outstanding, which are currently trading a price of $990 per $1000 face value and have a yield-to-maturity of 5%. The current tax rate is 25%. What is TNJ's weighted average cost of capital?

Reference no: EM133322696

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