What is eaglet corporations weighted average cost of capital

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Reference no: EM13874962

Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?

Target common equity weight: 60 percent

Target debt weight: 40 percent

Cost of equity: 13 percent

Cost of debt: 6 percent

Tax rate: 35 percent

A) WACC = 9.36 percent

B) WACC = 6.63 percent

C) WACC = 10.20 percent

Reference no: EM13874962

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