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The mix of debt and equity is40%debt,60%equity. The pre-tax cost of debt is 5%,andthecost of equity is 10%. Taxes are 40percent. Calculate WACC. Remember to

The mix of debt and equity is40%debt,60%equity. Thepre-taxcost of debt is 5%,andthecost of equity is 10%. Taxes are 40percent. Calculate WACC.

Remember to adjust the cost of debt for the tax rate as shown in the WACC formula. The formula is in the book and on the equations sheet.

Enter your answer as a percentage rounded to 2 decimalplaces(e.g., enter 5.25 percent as 5.25)

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