+3 votes
in Class 12 by kratos

If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?

a) 10.533%

b) 7.533%

c) 9.533%

d) 11.350%

1 Answer

+1 vote
by kratos
 
Best answer

(c) 9.533% .

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