John’s Restaurants is a gourmet restaurant service located in Philadelphia, A. It has an unleveraged required

John’s Restaurants is a gourmet restaurant service located in Philadelphia, A. It has an unleveraged required return of r = 43%. John’s rebalances its capital structure each year to a target of L = 0.52. T* = 0.20. John’s can borrow currently at a rate of rd = 26%. What is John’s WACC? SOLUTION