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CFA Level 1
Corporate Finance

Calculating WACC for XYZ Corporation

Very Easy Cost Of Capital Weighted Average Cost Of Capital

XYZ Corporation is evaluating its financing methods and aims to calculate its Weighted Average Cost of Capital (WACC). The company has the following capital structure:

  • Equity: $700,000
  • Debt: $300,000

The cost of equity is estimated at 10% and the cost of debt is 5%. What is the Weighted Average Cost of Capital (WACC) for XYZ Corporation?

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