Speed City supplies helicopters to corporate clients. (Click the icon to view additional information.) The company's results for 2017 are as follows: E: (Click the icon to view the data.) Read the requirements. Requirement a. What is Speed City's weighted average cost of capital? More Info Begin by determining the formula to calculate WACC (After tax cost of debt X Market value of debt ) + x Cost of equity Market value of equity) Market value of equity = WACC Market value of debt + Speed City has two sources of funds: long-term debt with a market and book value of $26 million issued at an interest rate of 10% and equity capital that has a market value of $14 million (book value of $13 million). The cost of equity capital for Speed City is 17%, and its tax rate is 40%. Speed City has divisions in two cities that operate autonomously (Enter the amount as a decimal. Round the WACC to five decimal places, in the format X.XXXXX.) The company's WACC is Requirements Print Done a. What is Speed City's weighted average cost of capital? b. Compute each division's Economic Value Added. Enter any number in the edit fields and then clic Print Done parts remaining Check