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Your company has a debt to equity breakdown of 60% debt and 40% equity. The cost of the debt is 5%* and the cost of
- Your company has a debt to equity breakdown of 60% debt and 40% equity. The cost of the debt is 5%* and the cost of the equity is 12%. What is your companys Weighted Average Cost of Capital (WACC)? Please use the short formula below for WACC.
WACC = [%Debt (Cost of Debt)] + [%Equity (Cost of Equity)]
*FYI: Cost of Debt = 7.14% (1-.30) = 5.0%
b. Your company has the debt to equity breakdown below. The cost of the debt is 4%* and the cost of the equity is 11%. What is your companys Weighted Average Cost of Capital (WACC)?
COST OF CAPITAL PROPORTION OF TOTAL ASSETS
EQUITY 11% .50
Debt 4% .50
Please use the short formula below for WACC.
WACC = [%Debt (Cost of Debt)] + [%Equity (Cost of Equity)]
*FYI: Cost of Debt = 5.0% (1-.20) = 4.0%
I need this asap, if possible, please.
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