Question
Company XYZ has the following loans: Building Loan, $200,000 at 5.0% interest. Vehicle Loan, $75,000 at 7.0% interest. Line of Credit, $150,000 at 8.0% interest.
Company XYZ has the following loans:
- Building Loan, $200,000 at 5.0% interest.
- Vehicle Loan, $75,000 at 7.0% interest.
- Line of Credit, $150,000 at 8.0% interest.
The owners have also put in $300,000 equity and expect 15% return.
The current tax rate is 22.5%.
Calculate the WACC % for company XYZ.(DO NOT include % sign and use 1 decimal.For example 9.43% would be input as 9.4.)
Step by Step Solution
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Step: 1
To calculate the Weighted Average Cost of Capital WACC you need to find the weighted average of the ...
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
