What is the WACC for Lee Family Firms?
Attatched is an excel template of the company information if you scroll all the way over. It has two projects: Francis Lightfoot and Richard Henry. The problem is #13 and the answer to the problem is 3.89%.
Weighted Average cost of capital (WACC) =
(Weight of equity * cost of equity) + (weight of debt * cost of debt)
Computation of weights
We shall compute market weights of debt and equity
Equity Capital = Price per share * number of shares
= $45 * 35,000
Debt Capital = Price ...
Computations done for you.