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Wilson's Automotive Car Care's WACC

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What is Wilson's Automotive Car Care's WACC if the cost of debt is 14%, the cost of equity is 26%, and it is 46% financed by debt (taxes are 7%)?

Please use the equation WACC = [d/v x (1-tc)rdebt] + [e/v x requity]
1. How do you find the security of proportion of the firm's market value?
2. How do you find the required rate of return on each security?
3. What is the weighted average of these returns?

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Solution Summary

Wilson's Automotive Car Care's WACC is utilized. The weighted average of the returns are determined.

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Please use the equation WACC = [d/v x (1-tc)rdebt] + [e/v x requity]
1. How do you find the security of proportion of the firm's market ...

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