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Target capital=45%debt,55%equity... costof equity=18%,costofdebt=9%.... What is company's WACC?


this is a managerial finance question and WACC stands for Weighed Average Cost of Capital. The question is this: a company has a target capital structure of 45% debt, 55% equity. Its cost of equity is 18% & its cost of debt is 9%. if the tax rate is 34%, What is the WACC?

WACC=12.573%

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