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Find Weight Average Cost of Capital (WACC) WACC = (ra) (wa) (1-+) + (rce) (ce) ra - Cost of debt 1-2-(1-tax Rate) Wd- weight
Find Weight Average Cost of Capital (WACC) WACC = (ra) (wa) (1-+) + (rce) (ce) ra - Cost of debt 1-2-(1-tax Rate) Wd- weight of debt Plug-In Formula Above Wee- rce - cast of common stock (equity) weight of common Stock (equity). Cost of Equity: Beta = 0.90 Risk Rate 272% theturn of the market = 10.76% Cost of Equity: Marginal Tax Rate = 21.06% Pre-Tax Cost of Debt (Yeild to maturity of Company bonds) 3.29%
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