Question: Can you please provide the explanation, formula and correct answer for the problem above? I need specific step by step on how to solve the

Can you please provide the explanation, formula and correct answer for

Can you please provide the explanation, formula and correct answer for the problem above?

I need specific step by step on how to solve the problem. The answer is B) .168751, can you please explain how/why?

Based on the following information, what is the firm's weighted average cost of capital of the operating assets, WACC ? Cost of debt, RD:7% Cost of equity, RS:20% Total market value of debt, D: 500 Total market value of equity, S:1,500 Number of common shares outstanding: 100 Total market value of non-operating assets, N:200 Cost of non-operating assets, RN:9% Corporate tax rate, T: 40% a. 127767 b. 168751 C. .143009 d. 188232 Based on the following information, what is the firm's weighted average cost of capital of the operating assets, WACC ? Cost of debt, RD:7% Cost of equity, RS:20% Total market value of debt, D: 500 Total market value of equity, S:1,500 Number of common shares outstanding: 100 Total market value of non-operating assets, N:200 Cost of non-operating assets, RN:9% Corporate tax rate, T: 40% a. 127767 b. 168751 C. .143009 d. 188232

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