Kalamata Company is considering a project. The market value of their debt is $4,500,000 and the market value of their equity is $7,000,000. The company has a before tax cost of debt of 6% and a cost of equity of 9%. The tax rate is 34%. What is the WACC (Weighted Average Cost of Capital) for the company?

Answer rating: 100% (QA)

To calculate the WACC we need to first calculate the cost of debt and the cost of equity Cost of deb... View the full answer