# Calculate WACC (Weighted average cost of capital) for Company B

See attached file for full problem description.

Company B has the present capital structure (see values and market data in attached file) which is considered optimal.

Calculate the company's weighted average cost of capital (WACC) using book value weights and market value weights.

© BrainMass Inc. brainmass.com June 3, 2020, 6:26 pm ad1c9bdddfhttps://brainmass.com/business/weighted-average-cost-of-capital/calculating-wacc-weighted-average-cost-capital-60482

#### Solution Preview

** Please see the attached file for the complete solution response **

I have assumed all debts mature on 9/23, i.e. I have assumed that the 2005 debt matures in exactly one year.

I have assumed debt figures are in millions.

If short term debt is a ...

#### Solution Summary

This solution carefully lists the parameters used in calculating the WACC, and provides one alternative solution.

$2.19