NO.PZ2023112701000057
问题如下:
An analyst gathered the following Information about the capital structure and before-tax component costs for a company. The company’s marginal tax rate is 40%.
The company’s weighted average cost of capital (WACC) is closest to:
选项:
A.8.55%. B.9.95%. C.10.56%.解释:
Correct Answer: C
As the target capital weights are not given, you can use market value weights to compute the WACC. The market value weights for debt and equity are 0.2, 0.8 respectively.
WACC = (Weighting of debt × Pre-tax cost of debt) × (1—Tax rate) + (Weighting of equity × Cost of equity)
WACC = 0.2(8%)(1 - 0.4) + 0.8(12%) = 10.56%
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