f I j j
C ->
F INB7D11-----------+--
ASSIGNMENT i! SEMESTER 1
lLL QUESrl!INS Fltllll AN WERE-D
- - - -1-_
DUE: 1~ APRIL 2026
, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
QUESTION 1
1.1. Calculate Oreatli Company’s weighted average cost of capital (WACC).
IFormu la for WACC:
WACC = ( :) r. + ( i) ra(l - T, )
Su b,stitute:
\\TACC == (0.7 x 0.15} (0.3, x 0.12 x (1 - 0.28)}
Step 1: Tax-adjusted cos-t of debt:
ra(l - Tt) == 0.12 x (1 - 0.28) == 0.12 x 0.72 = 0.0864 or 8.64%
Step 2~Weighted contributions:
• Equity~0. 7 X 0.15 == 0.105
• Debt: 0 ,3 x 0.0804 == 0 .02592
Step 3: Add together.
Vi ACC == 0.105 + 0.02592 == O. l:lU92 ~ 13.1o/c1
Answer WACC: 13.1%
C ->
F INB7D11-----------+--
ASSIGNMENT i! SEMESTER 1
lLL QUESrl!INS Fltllll AN WERE-D
- - - -1-_
DUE: 1~ APRIL 2026
, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
QUESTION 1
1.1. Calculate Oreatli Company’s weighted average cost of capital (WACC).
IFormu la for WACC:
WACC = ( :) r. + ( i) ra(l - T, )
Su b,stitute:
\\TACC == (0.7 x 0.15} (0.3, x 0.12 x (1 - 0.28)}
Step 1: Tax-adjusted cos-t of debt:
ra(l - Tt) == 0.12 x (1 - 0.28) == 0.12 x 0.72 = 0.0864 or 8.64%
Step 2~Weighted contributions:
• Equity~0. 7 X 0.15 == 0.105
• Debt: 0 ,3 x 0.0804 == 0 .02592
Step 3: Add together.
Vi ACC == 0.105 + 0.02592 == O. l:lU92 ~ 13.1o/c1
Answer WACC: 13.1%
