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Crowsnest Industrial has the following capital structure information: Assuming the company is operating at its target...

Crowsnest Industrial has the following capital structure information:

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Assuming the company is operating at its target capital structure what are the appropriate weights to use for calculating WACC?

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Answer #1

Weight of equity=15*4000000/(15*4000000+20000*880)
=77.32%

Weight of debt=20000*880/(15*4000000+20000*880)
=22.68%

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