a) What is the companys weighted average cost of capital?

b) What are the companys weights for debt and equity using the companys target capital structure (debt / equity ratio)?

c) Assuming that the company only has the long term debt in this instance, then using the target weighting for D/E from part (b), what is the WACC?

1) Lamda plc. Has the following financial information regarding financing and its costs. The company is in the 25% corporate tax bracket. They also have a target debt to equity ratio of 2/3