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Sigma company has the following inputs: Cost of Debt Cost of equity Marginal tax rate Debt Equity 5.00% 11.5% 35.00% 400$ million 600$ million 1.

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Sigma company has the following inputs: Cost of Debt Cost of equity Marginal tax rate Debt Equity 5.00% 11.5% 35.00% 400$ million 600$ million 1. Compute the WACC and after tax-WACC? 2. Recalculate he WACC if the company reduces its debt to 200$ million (20% ratio)

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