Jack tire manufacturer maintains a capital structure of 45, Financial Management

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Jack tire manufacturer maintains a capital structure of 45

Jack Tire Manufacturer maintains a capital structure of 45% debt and 55% equity. Their tax rate of 30 percent.

The firm has no preferred stock issued. Their cost of equity is 13.5% and the after-tax cost of debt is 4.5 percent. What is the weighted average cost of capital?

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Financial Management: Jack tire manufacturer maintains a capital structure of 45

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Financial Management: Jack tire manufacturer maintains a capital structure of 45

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