CoffeeCarts has a cost of equity of 14.3 % 14.3% , has an effective cost of debt of 4.1 % 4.1% , and is financed 73 % 73% with equity and 27 % 27% with debt. What is this firm's WACC? CoffeeCarts's WACC is . (Round to one decimal place.)
WACC=Respective costs*Respective weight
=(14.3*0.73)+(0.27*4.1)
which is equal to
=11.5%(Approx).
CoffeeCarts has a cost of equity of 14.3 % 14.3% , has an effective cost of...
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Your firm is financed 100% with equity and has a cost of equity capital of 15%. You are considering your first debt issue, which would change your capital structure to 34% debt and 66% equity. If your cost of debt is 7%, what will be your new cost of equity? Assume no change in your firm's WACC due to the change in capital structures.
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A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a percentage rounded to two decimal places.]
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