Answer: 12.6%
Explanation:
The Weighted Average Cost of Capital like the term suggests , is the wieghted average cost of the various forms of capital used by a company including debt, equity and preferred equity.
Formula is;
= (Weight of equity* cost of equity) + (weight of debt * cost of debt)
= ( 15.5% * 0.75) + ( 3.9% * 0.25)
= 12.6%
