Question: Based on the Table Below, What is Debt's contribution to the WACC? Capital In Each Structure % Total Capital Cost of Capital WACC Debt 40000

Based on the Table Below, What is Debt's contribution to the WACC?

Capital In Each Structure % Total Capital Cost of Capital WACC
Debt 40000 6%
Retained Earnings 25000 12%
New Stock 26000
Cost to Raise New Stock = 2.5%
Tax Bracket 35%

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