WACC 10 Calculating the Weighted Cost of Capital
WACC = weighted avg. cost of capital defined as the average after tax cost of a company's various capital sources including common stock, preferred stock, bonds and any other long term debt.
WCC= weight x after tax cost
Target Capital Structure of Common 65%
Target Percent Debt 35%
Cost of Equity 14%
Cost of Debt 6%
Tax Rate 35%
Weight Cost Tax After Tax Cost WACC
Cost Tax Rate
Common Stock
Capital 65% 14% 14.00 % 9.10%
Debt 35% 6% 35% 3.90% 1.37%
Total 100% WACC 10.47%
Calculations: I need help with the formula and step by step information to find the answer. I can calculate the information on my own.