Question: Please be so kind to answer the below question and show all calculations: Question 1: A company has financed 45% of its assets through a

Please be so kind to answer the below question and show all calculations:

Question 1:

A company has financed 45% of its assets through a 11% after-tax cost of debt loan. The remainder of its assets are financed through equity. The firms required return on equity is 16%. What is the company's weighted average cost of capital (WACC)?

A. 11.25%

C. 28.50

B. 13.75%

D. 43.56%

Customer care Limited has determined its optimal capital structure, which comprises the following:

Form of capital Weight After-tax cost
Long-term debt 40% 6%
Preference shares 20% 10%
Ordinary shares 40% 9%

The weighted average cost of capital is ...

A. 5.3%.
B. 6.2%.
C. 8.0%.
D. 9.1%.

Thank you

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