The CEO of XYZ Co. has demanded a new calculation of the WACC for the company....

 

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The CEO of XYZ Co. has demanded a new calculation of the WACC for the company. The capital structure consists of 65% equity and 35% debt. The cost of equity is 13% and the pre-tax cost of debt is 5%. With a marginal tax rate of 39%, what is the WACC? 9.52% 12.20% 9.85% 4.56% The CEO of XYZ Co. has demanded a new calculation of the WACC for the company. The capital structure consists of 65% equity and 35% debt. The cost of equity is 13% and the pre-tax cost of debt is 5%. With a marginal tax rate of 39%, what is the WACC? 9.52% 12.20% 9.85% 4.56%

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