Using the WACC in practice: Ronnie's Comics has found that its cost of equity capital is 15 percent and its cost of debt capital is 12 percent. If the company is financed with $250,000,000 of ordinary shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Ronnie's if it is subject to a 35 percent company tax rate?
A) 6.05%
B) 6.95%
C) 8.75%
D) 13.65%

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The Answer of Using the WACC in practice: Ronnie's Comics has found that its cost of equity capital is 15 percent and its cost of debt capital is 12 percent. If the company is financed with $250,000,000 of ordinary shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Ronnie's if it is subject to a 35 percent company tax rate?
A) 6.05%
B) 6.95%
C) 8.75%
D) 13.65%

Using the WACC in Practice: Ronnie's Comics Has Found That