WACC = We*Ke + Wd*Kd*(1-T)
where
We - Weight of equity = Let We
Wd - Weight of debt = (1-We)
Ke - cost of equity = 15%
Kd - cost of debt = 9%
T - Tax rate = 35%
12 = We*15 + (1-We)*9*(1-.35)
= 15We + (1-We)*5.85
= 15We + 5.85-5.85We
15We -5.85We = 12- 5.85
9.15 We = 6.15
We = 6.15/9.15
Weight of equity = 67.21%
Weight of debt = 100-67.21 = 32.79%
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