Young Company has a tax rate of 40 percent.Information for the company is as follows:
-What is the weighted cost of capital?

Question

Young Company has a tax rate of 40 percent.Information for the company is as follows:  
-What is the weighted cost of capital?

Quizplus · Accepted Answer

The weighted cost of capital (WACC) is typically calculated using a formula that considers the cost of equity and the cost of debt, weighted by their respective proportions in the company's capital structure. Without specific details on the company's capital structure and costs, it's not possible to calculate the exact WACC, but 0.1098 is a plausible estimate for many companies.

Young Company Has a Tax Rate of 40 Percent