Aftertax cost of debt = Before tax cost*(1-tax
rate)
12%*(1-35%)
7.80%
Weight. Cost Weighted
cost
Debt. 23625 7.80%
1842.75
Preferred 4350 13.50%
587.25
Equity. 52275 19.20%
10036.8
Total 80250
12466.8
WACC = Weighted cost/total weight
12466.8/80250
0.1553495327 or 15.53%
So wacc is 15.53%
Calcul The Aztec Corporation has the following market capital components and costs. Calculate Aztec's WACC Component...
The Aztec Corporation has the following market capital components and costs. Calculate Aztec's WACC. Component Value Cost Debt $ 23,625 12.0% 13.5% Preferred Stock Common Equity $ 4,350 $ 52,275 19.2% Aztec has a 35% marginal tax rate.
Problem 13-2 The Aztec Corporation has the following capital components and costs. Calculate Aztec's WACC. Round the answer to two decimal places of percentage. Do not round your intermediate calculations. Component Value Cost Debt $23625 12.0% Preferred 4350 15.0 Stock Common 52275 20.3 Equity
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