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What is the weighted average cost of capital (WACC) for a company with 30% equity, 70% debt, an average yield to maturity (YTM) for debt

  1. What is the weighted average cost of capital (WACC) for a company with 30% equity, 70% debt, an average yield to maturity (YTM) for debt of 8%, a tax rate of 32% and a cost of equity of 7%?

  1. 3.9%
  2. 5.6%
  3. 5.9%
  4. 7.7%

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