Week 5 Individual Assignment

Question: #1530

The weighted average cost is can be found by completing the following:

Cost of capital = proportion of debt (x) after-tax cost of debt (+) proportion of equity (x) the cost of equity. The proportion of debt is provided by debt (/) assets. Since total assets is equal to total debt (+) total equity, the proportion of equity is equal to 1 (debt / assets); basically, the cost of capital is (debt / assets) (x) after-tax cost of debt + (1- debt / assets) (x) the cost of equity. Accordingly, the table is filled in this manner:.???

Solution: #1512

Week 5 - Individual Assignment

The weighted average cost is can be found by completing the following: Cost of capital = proportion of debt (x) after-tax cost of de...