Suppose Bianca's target capital structure is as follows:
Wd=0.40 Wps=0.10 Wce=0.50;
Please show your work so I can understand how to do this going forward. Thank you.© BrainMass Inc. brainmass.com October 10, 2019, 7:29 am ad1c9bdddf
The WACC function is:
WACC = Wd * Rd (1-t) + Wce * Rce + Wps * Rps
According to ...
This solution computes the weighted average cost of capital (WACC) based on the initial costs of capital.