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Financial Decisions Weighted Average Cost of Capital (WACC) and Economic Value Added (EVA) Problems 1 1. a. Your company has a debt to equity breakdown

Financial Decisions Weighted Average Cost of Capital (WACC) and Economic Value Added (EVA) Problems 1 1. a. Your company has a debt to equity breakdown of 60% debt and 40% equity. The cost of the debt is 5%* and the cost of the equity is 12%. What is your company's Weighted Average Cost of Capital (WACC)? Please use the short formula below for WACC. WACC = [?bt (Cost of Debt)] [%Equity (Cost of Equity)]

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