Anson Jackson Court Company (AJC) The Anson Jackson Court (AJC) currently has $150,000 market value...
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Anson Jackson Court Company (AJC) The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $89,000, and it is a zero growth company. AJC's current cost of equity is 10%, and its tax rate is 25%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00. Refer to the data for the Anson Jackson Court Company (AJC). What is AJC's current total market value and weighted average cost of capital? Total Market Value; WACC
a. $750,000; 8.4%
b. $650,000; 9.4%
c. $650,000; 8.9%
d. $750,000; 8.9%
e. $750,000; 9.4%
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