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CoffeeCarts has a cost of equity of 14.3 % 14.3% , has an effective cost of...

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.)

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Answer #1

WACC=Respective costs*Respective weight

=(14.3*0.73)+(0.27*4.1)

which is equal to

=11.5%(Approx).

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