Question
Jus trying to figure this out and used WACC formula can you pleasehelp withthis problem as soon as possible and to calculate WACC ratio;cost component(%);weight
Jus trying to figure this out and used WACC formula can you pleasehelp withthis problem as soon as possible and
to calculate WACC ratio;cost component(%);weight component (%)for each financing method (debt or equity)
Say, ABC Company figures that they will need to borrow $30,000 from issuing Bonds and $20,000 from selling Stocks to raise a total of $50,000 (100%) to fund a long-term project.
The weight % of Debt Financing can be calculated by 30,000/50/000=60%, and the weight % of Equity Financing can be done by 20,000/50,000=40%.(40% debt +60% equity =100% total financing amount)
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