Weekend Warriors, Inc., has 25% debt and 75% equity in its capital structure. The firm's estimated after-tax cost of debt is 5% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital (WACC). Weekend Warriors' weighted average cost of capital (WACC) is %. (Round to two decimal places.)

Weekend Warriors, Inc., has 25% debt and 75% equity in its capital structure. The firm's estimated after-tax cost of debt is 5% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital (WACC). Weekend Warriors' weighted average cost of capital (WACC) is %. (Round to two decimal places.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1eM

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