What is jcs current total market value and weighted average, Financial Management

What is jcs current total market value and weighted average

The Jackson Court Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. AJC's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares.

a) What is JC's current total market value and weighted average cost of capital?

b) What is its current stock price?

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Financial Management: What is jcs current total market value and weighted average

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