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qid 696 · business#
Question: Your firm is trying to decide whether to buy an e-commerce software company. The company has $100,000 in total capital assets: $60,000 in equity and $40,000 in debt. The cost of the company’s equity is 10%, while the cost of the company's debt is 5%. The corporate tax rate is 21%. What is the WACC of the company?
- 0.0845
- 0.0800
- 0.0823
- 0.0891
- 0.0758
- 0.0674
- 0.0652
- 0.0700
- 0.0921
- 0.0789
Our answer: E. 0.0758 Source quote machine-checked (exact quote)
A machine check confirms the quoted words appear at the source. A person has not yet reviewed these. EARN MARKS as a Human Reviewer
How it was answered
Stored formula / worked method, replayed by code
Corporate weighted average cost of capital (WACC) calculation problem
card: formula · card sha256 e8d5e0932b95155f…
Current source
Wikipedia, "Weighted average cost of capital"
https://en.wikipedia.org/wiki/Weighted_average_cost_of_capital
“The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.”
Source quote machine-checked (exact quote)
retrieved 2026-09-18T01:18:05.404Z
page text sha256 64219738ede8ac7a… · content sha256 362feb765b0c8ab3…
addendum formula_qid696.formula_ADDENDUM_source_rs20260918T011805Z · sha256 b311b263c2922d44… · replaces the version below, addendum sha256 34c1e3a88956eb1a…
Earlier version (superseded)
https://www.investopedia.com/terms/w/wacc.asp
Source weak (http_get_200_text_and_question_terms)
retrieved 2026-09-17T00:32:16.148Z
page text sha256 501d7a84cb3d98e9… · content sha256 —
addendum formula_qid696.formula_ADDENDUM_source_relabel_unverified20260917T012453Z · sha256 34c1e3a88956eb1a… · replaces the version below, addendum sha256 106449bbef2dfbb5…
Earlier version (superseded)
https://www.investopedia.com/terms/w/wacc.asp
Source weak (http_get_200_text_and_question_terms)
retrieved 2026-09-17T00:32:16.148Z
page text sha256 501d7a84cb3d98e9… · content sha256 —
addendum formula_qid696.formula_ADDENDUM_source_bf20260917T003216Z · sha256 106449bbef2dfbb5… · replaces the version below, addendum sha256 db61049277f5c94d…
Earlier version (superseded)
No public source has been found for this card yet (4 places checked internally).
addendum formula_qid696.formula_ADDENDUM_source · sha256 db61049277f5c94d…
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