If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate…
CA Intermediate · Financial Management and Strategic Management · MTP · September 2026
If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
(C) 9.533%
Topics: Part-A: Financial Management
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