THM417 WEEK15, HOMEWORK WACC AD ITS CALCULATION 1- WHAT IS WACC 2- WHAT IS THE FORMULA FOR WACC 3- WHAT IS THE FORMULA FOR COST OF EQUITY 4- WHAT ARE THE USES OF WACC 5- GIVEN ARE THE COST STRUCTURE AND COST OF THOSE STRUCTURES THAT MAKE UP THE CAPITAL of company B. WEIGHTED AVERAGE COST OF ITEMS 1,000 000 % ? 500 000 DEBT ? EQUITY % ? TOTAL %100 %20 1,500 000 IF THE TAX RATE IS 30% AND INTEREST RATE BEFORE TAX IS 10%, ***Calculate the WEIGHTED AVERAGE COST OF CAPITAL of the company B Hint; first you need to calculate the weighted average of each capital structres, items that make up the capital (DEBT AND EQUITY) and then the cost of debt after tax rate