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Weighted Average Cost of Capital ( WACC )

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If the current interest rate on new debt is 9% and the marginal tax rate is 40% and the capital structure is:

Debt: $104,000,000
Common Equity: $156,000,000
Total Liabilities and Equity: $260,000,000

How do I figure the weighted average cost of capital (WACC)?

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Weighted Average Cost of Capital ( WACC ) is calculated. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.

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WACC is a calculation of a firm's cost of capital that weights each category of capital proportionately. Included in the WACC

calculation are all capital sources ...

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