Company XYZ has the following loans:

• Building Loan, $200,000 at 5.0% interest.
• Vehicle Loan, $75,000 at 7.0% interest.
• Line of Credit, $150,000 at 8.0% interest.

The owners have also put in $300,000 equity and expect 15% return.

The current tax rate is 22.5%.

Calculate the WACC % for company XYZ.(DO NOT include % sign and use 1 decimal.For example 9.43% would be input as 9.4.)

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC you need to find the weighted average of the ... View the full answer