What is finance? (calculation) Puma has $18 million capital, of which, 60% is debt. Shareholders require yield of 10% p.a. It costs Puma 5% p.a to borrow. 1. Calculate Puma's Weighted Average Cost of Capital. Answer (2.5 marks) 2. An additional $2 million of capital has been borrowed at the same cost to invest in a new marketing campaign. Shareholders' required rate of return increases by 2% p.a due to an increase in industry competition. What is Puma's new WACC? Answer: (2.5 marks)