Q. If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)? (Solved)

1. 10.533%

2. 7.533%

3. 9.533%

4. 11.350%

  • c. 9.533%
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