Question








7. Calculate a firms approximate WACC given that the debt-to-equity ratio is 3, the cost of debt is 8%, the cost of equity i
1 0
Add a comment Improve this question Transcribed image text
Answer #1

Calculation of Weighted Aurnage Cast of Capital (WACC) Delet le Equity Ratio - 3 Grinen Delet to equity Delet A and Total EquCalculate Now ist use After lase Cost of Delet Cost of Debt x (1 - Cax Rate) (1-.30) After Care Cost = 8 1 s. 6% of DebtWACC = t & After lax Cost of Debat & Weight of Debat Cast of Equity Weight of Equity + 15% x.25 WACC = WACC 5.6% X 7.95 75 %.

Add a comment
Know the answer?
Add Answer to:
7. Calculate a firm's approximate WACC given that the debt-to-equity ratio is 3, the cost of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT