TYJ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $30 bi

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answerhappygod
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TYJ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $30 bi

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TYJ corporation has the following market value based capital
structure. Long term bonds $20 billion Common equity $30 billion
The required rate of return for the common stock is 20% and the
yield to maturity for the bonds is 10%. The tax rate is 30%.
Compute the after tax weighted average cost of capital.
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