Answer:
weighted-average cost of capital is 11.57 %
Explanation:
Weighted Average Cost of Capital (WACC) is the return that is required by providers of long term permanent sources of capital.
WACC = Weight of Equity × Cost of Equity + Weight of Debt × After tax cost of debt.
where,
After tax cost of debt = interest × ( 1 - tax rate)
= 8% × (1 - 0.35)
= 5.20 %
Therefore,
WACC = 0.65 × 15% + 0.35 × 5.20 %
= 11.57 %
