Question
What is the weighted average cost of capital of a company that has debt of $8.505...
What is the weighted average cost of capital of a company that has debt of $8.505 million and equity of $11.143 million? The average before-tax cost of debt is 7.30% per annum and the average cost of equity is 10.10% per annum. The company tax rate is 30%. Please use three methods – a mathematical formula, SUMPRODUCT function and SUM array function, to compute the weighted average cost of capital.
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