after tax cost from previous problem is: 3.0044%

4. Given the after-tax cost of new FDX 30-year bonds calculated in the previous problem and that FDX has $36.120 Billion of Debt and its most recent market value of equity is 68.135 Billion, (total value of debt plus equity of $104.255 Billion) its debt/equity ratio is 0.530, which converts to its current capital structure is 34.7% debt (Debt Total Asset ratio is 34.7%) and 65.3% equity, what is the weighted average cost of capital (WACC) for FDX given the cost of debt and equity capital calculated above? FDX has no preferred stock. Remember: WACC = wa *before tax cost of debt)*(1-tax rate) +w.cost of equity WACC = % 4. Given the after-tax cost of new FDX 30-year bonds calculated in the previous problem and that FDX has $36.120 Billion of Debt and its most recent market value of equity is 68.135 Billion, (total value of debt plus equity of $104.255 Billion) its debt/equity ratio is 0.530, which converts to its current capital structure is 34.7% debt (Debt Total Asset ratio is 34.7%) and 65.3% equity, what is the weighted average cost of capital (WACC) for FDX given the cost of debt and equity capital calculated above? FDX has no preferred stock. Remember: WACC = wa *before tax cost of debt)*(1-tax rate) +w.cost of equity WACC = %