Answer:
the weighted average cost of capital is 6.96%
Explanation:
The computation is shown below;
= Cost of equity × weight of equity + cost of debt × (1 - tax rate) × weight of debt
= 15% × 40% + 2.45% × (1 - 0.35) × 60%
= 6% + 0.96%
= 6.96%
Hence, the weighted average cost of capital is 6.96%
The same would be considered
