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    WACC with rebalancing

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    A gourmet catering service has an unleveraged required return of r =43%. The company rebalances its capital structure each year to a target of L= 0.52. T * =0.20. The owner can borrow currently at a rate of rd =26%. What is the company's WACC?

    Please provide all equations used in detail

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    https://brainmass.com/economics/finance/wacc-rebalancing-272220

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    A gourmet catering service has an unleveraged required return of r = 43%. The company rebalances its ...

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    This solution is comprised of a detailed explanation to answer what is the company's WACC.

    $2.19