Shazrts7970 Shazrts7970
  • 01-09-2020
  • Business
contestada

Calculate the AT- WACC with a 60% debt and 40% equity financing structure.

Respuesta :

Parrain
Parrain Parrain
  • 03-09-2020

Answer: 9.9%

Explanation:

The Weighted Average Cost of Capital (WACC) represents the cost of financing the business through debt and capital.

It is calculated as;

= (Weight of stock * cost of stock) + ( Weight of debt * after-tax cost of debt)

After tax cost of debt;

= debt interest *  ( 1 - tax rate)

= 10% * ( 1 - 35%)

= 6.5%

WACC = (40% * 15%) + ( 60% * 6.5%)

= 9.9%

Answer Link

Otras preguntas

What value of x makes the equation true ? 4(2x-4)=16
find the circumference of a circle whose radius is 15.4cm
find the circumference of a circle whose radius is 15.4cm
jasmines cd collection is 3/8 jazz 1/4 rap and the rest is rock music what is the fraction of rock music
What value of x makes the equation true ? 4(2x-4)=16
In scientific notation, what is the sum of 2.3 times 10^{-3} and 5.4 times 10^{-4}?a. 2.84 times 10^{-3}b. 5.63 times 10^{-3}c. 7.7 times 10^{-7}d. 12.42 times
In scientific notation, what is the sum of 2.3 times 10^{-3} and 5.4 times 10^{-4}?a. 2.84 times 10^{-3}b. 5.63 times 10^{-3}c. 7.7 times 10^{-7}d. 12.42 times
All of the following expressions have a value between 0 and 1, excepta. \frac{(-3^{7})}{(-3)^9}b. 4^{-10}× 4^{6}c. \frac{(8^3)^3}{8^{-4}} d. ( \frac{2}{5} ^{8})
jasmines cd collection is 3/8 jazz 1/4 rap and the rest is rock music what is the fraction of rock music
What value of x makes the equation true ? 4(2x-4)=16