skip to Main Content
Need Help with a custom paper? Get started here

Jacks Construction Co. has 80000 bonds outstanding that are selling at par value

Jacks Construction Co. has 80000 bonds outstanding that are selling at par value. The bonds yield Show more Jacks Construction Co. has 80000 bonds outstanding that are selling at par value. The bonds yield 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 3 percent and the market risk premium is 6 percent. Jacks tax rate is 34 percent. What is Jacks weighted average cost of capital? 5.28 percent 8.54 percent 9.26 percent 8.27 percent 4.99 percent Show less

Need help with this paper? Please follow this link to get started with the perfect academic paper today.

Leave a Reply