1) Suppose the debt ratio for a company is 45%. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given?
2) suppose the Debt over equity ratio (D/E) for a company is 1.6. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given?