On a market value basis, GFV Co is financed 70% by equity and 30% by debt. The company has an after-tax cost of debt of 6% and an equity beta of 1·2. The risk-free rate of return is 4% and the equity risk premium is 5%.
What is the after-tax weighted average cost of capital of GFV Co? Show your formula.

Answer rating: 100% (QA)

The aftertax weighted average cost of capital WACC formula for GFV Co is WACC EV Re DV Rd 1 Tc ... View the full answer