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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

  1. 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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