JAK Industries has 5 million shares of stock outstanding selling at $25 per share and an issue of $40 million in 8 percent, annual coupon bonds with a maturity of 15 years, selling at 108 percent of par ($1000). If JAK's weighted average tax rate is 34 percent and its cost of equity is 15 percent, what is JAK's WACC?
A)9.19 percent
B)12.36 percent
C)12.50 percent
D)12.98 percent

Question

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The Answer of JAK Industries has 5 million shares of stock outstanding selling at $25 per share and an issue of $40 million in 8 percent, annual coupon bonds with a maturity of 15 years, selling at 108 percent of par ($1000). If JAK's weighted average tax rate is 34 percent and its cost of equity is 15 percent, what is JAK's WACC?
A)9.19 percent
B)12.36 percent
C)12.50 percent
D)12.98 percent

JAK Industries Has 5 Million Shares of Stock Outstanding Selling