๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

  • google app store apple app store
  • โœ–

      Question

      Cost of equity is 15%, cost of debt is 10%, debt-equity

      ratio is 1:1, tax rate 30%. What is WACC?
      A 12.5% Correct Answer Incorrect Answer
      B 13.5% Correct Answer Incorrect Answer
      C 11% Correct Answer Incorrect Answer
      D 10% Correct Answer Incorrect Answer

      Solution

      WACC = 0.5ร—15% + 0.5ร—10%(1โ€“0.3) = 7.5% + 3.5% = 11%,ย 

      Practice Next
      ask-question