Determine the after-tax factor to use in the WACC formula. Show all work

1.

The final inputs needed for the WACC formula is the weighted percentages of equity and debt.

Using the values above, calculate both percentages here.

Total capitalization of company:

Weighted equity percentage:

Weighted debt percentage:

2. Now that you have gathered all of the inputs necessary for the WACC formula, calculate the WACC percentage. Show your work.

3. What does the weighted average cost of capital percentage mean to the owners of BHT?