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Calculate the weighted average cost of capital (WACC), considering that Company D has a total value of debt and equity of 600,000, and hold 40%

  1. Calculate the weighted average cost of capital (WACC), considering that Company D has a total value of debt and equity of 600,000, and hold 40% in debt. The cost of equity is of 4% and the company borrows at a cost of 3%. Company D pays 30% tax

Solve using this formula:

WACC = equity / (equity +debt) x cost of equity + debt (equity +debt) x cost of debt x (1-tax rate)

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