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Business, 12.08.2019 19:10 jmcd10

Jack's construction co. has 80,000 bonds outstanding that are selling at par value. bonds with similar characteristics are yielding 8.6 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 4 percent and the market risk premium is 8 percent. jack's tax rate is 34 percent. what is jack's weighted average cost of capital?

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