- #1
Nawz
- 32
- 0
Homework Statement
A. 53%
B. 40%
C. 30%
D. 70%
E. 36%
Solution: WACC = wd kd (1 - T) + wsks ; 13.00% = wd (9% (1 - 0.35)) + (1 - wd) ($2(1.075)/$25.00 + 7.5%) ; Solve for wd = 30%.
Homework Equations
The Attempt at a Solution
ok, i got this one right but i did it by plugging in the answer becus i cld not figure it out. The formula for the answer how they do it is above but simplified i get this: .13=wd(.0585)+(1-wd)(.161)
wd comes out to be 30 percent.
i must be missing something because i can not figure it out