r= 11.58%
Post tax cost of debt= 5.53%
Type of Capital
Book value
% XX Total XXXXXXX
XXXX XX capital
Weighted XXXX of XXXXXXX
LT XXXX
28,000,XXX
XX.00%
5.XX%
X.21%
XXXXXX stock
X,XXX,XXX
X.43%
11.XX%
0.17%
Retained earnings
41,XXX,XXX
58.57%
XX.58%
X.XX%
Total
XX,XXX,XXX
XXX.XX%
Hence, the WACC is X.XX% XXX XXX XXXXXXX
Notes-
XXXXXX capital XXXXXXXX of common XXXXXX plus retained earnings. The cost of capital XXX retained XXXXXXXX is XXXX as that of XXXXXX stock. When XX XXXXXXXX XXXXXX value of XXXXXX, the value of XXXXXXXX earning is XXXXXXX accounted XXX in share price