The firm's book value of equity totals $30,000,000. The firm's capital structure is 30% equity and 70% long-term debt. The debt carries an average interest rate of 6% (after-tax), and last year's net income was $4,000,000. What was the firm's weighted average cost of capital?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to consider the cost of both equity a... View the full answer