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Determining weighted average cost of capital of a company

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What is the weighted average cost of capital of a company that has debt of $5 million and equity of $8 million? The average before-tax cost of debt is 8.5 per cent per annum and the average cost of equity is 11.7 per cent per annum. The company tax rate is 32.5 per cent. Please use three methods - a mathematical formula, SUMPRODUCT function and SUM array function, to compute the weighted average cost of capital.

Reference no: EM132643377

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