A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 12%, and its weight of equity is 60%. Calculate the firm’s weighted average cost of capital (WACC). [Enter your answer as a decimal rounded to four decimal places.]

    Answer: 8.40%
    Calculation of WACC:
    WACC = 3%*40%+12%*60% = 8.40%

    Weighted mediocre require of excellent is the weighted mediocre of the require of the components of excellent affect equity and default, the weights being their correlation in the aggregate excellent.