Question: This is the information I have for this problem, how do I calculate the Weighted Average Cost of Capital? I have the supposed formulae but
This is the information I have for this problem, how do I calculate the Weighted Average Cost of Capital? I have the supposed formulae but do know which numbers go where, please help.
Total Debt: $12,000 Cost of debt: 8%
Total Equity: $15,000 Cost of equity: 12%
Companys tax rate: 24%
Expected Rate of Return: 15%
The WACC is:
please show me the math.
Thank you,
Sandi
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