CFA Level 1
Corporate Finance

Calculating WACC for Tech Innovators Inc.

Hard Cost Of Capital Weighted Average Cost Of Capital

A finance manager at Tech Innovators Inc. is tasked with calculating the company's Weighted Average Cost of Capital (WACC). Tech Innovators has a capital structure consisting of 40% equity and 60% debt. The cost of equity is estimated at 12%, and the after-tax cost of debt is determined to be 6%. Given these figures, what is the WACC for Tech Innovators Inc.?

Hint

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% Correct86%