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Calculate the weighted average cost of capital

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Question - XYZ Inc is a public listed company. The company's after-tax cost of debt capital and cost of equity capital are 5 percent and 7 percent respectively. If the company's capital structure is consisting of 60 percent debt capital and 40 percent equity capital, calculate the weighted average cost of capital (WACC).

a. 6.2%

b. 5.8%

c. 5.2%

d. 4.3%

Reference no: EM133032124

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