Now we can calculate the WACC using the given formula: WACC = E/V rE + D/V rD (1 – TC) WACC = ( 62 , 500 , 000 / 62,500,000/148,900,000) * 0.1024 + ( 86 , 400 , 000 / 86,400,000/148,900,000) * 0.0498 WACC = 0.0421 + 0.0287 = 0.0708 or 7.08% Wrongly calculated use Now we can calculate the WACC using the given formula: WACC = E/V rE + P/V rP + D/V rD (1 – TC)

recalculate WACC using formula given: WACC = E/V rE + P/V rP + D/V rD (1 – TC)

Rockstar Corporation has 2.74 million ordinary shares that currently trade for $67.15, an equity book value of $2.7 million and retained earnings of $37.1 million. lt also has $64.0 million in debt currently trading for 100% of its fair value. A) What weights should it use in computing its WACC? (1 mark) The debt weight for the WACC calculation is???%. (Round to two decimal places.) The equity weight for the WACC calculation is ???%. (Round to two decimal places.) B) Rockstar Corporation has a cost of equity of 15.8% and has an effective cost of debt of 5.4 %. What is this firm's WACC? (Assuming no tax environment) (1.5 marks) Rockstar Corporation's WACC is ???%.(Round to two decimal places.) C) Assume Rockstar Corporation has a cost of equity of 15.8% and has an effective cost of debt of 5.4 %and an effective tax rate is 27.0%. What is this firm's after tax - WACC? (1.5 marks) Rockstar Corporation's after-tax WACC is ???%. (Round to two decimal places.)

Continue considering Firm UVW. Suppose Firm UVW is considering investing in a new projectof urban development. The cost of the project is $5 Millions of USD. Firm UVW expects thatthe non-incremental yearly cash flows from the project are $1.5 Million of USD for the nextfive years; e.g. that is $1.5 Million of USD each year. Using the calculated WACC in theprevious question, what is the Net Present Value (NPV) of the project? Note: Express youranswers in strictly numerical terms. For example, if the answer is five million dollars, write5000000 as an answer.

If you have net operating profit after tax of $100,000, capital employed of $500,000 and WACC of 10%, your economic value added is _______________560004500010000050000

If interest is tax-deductible and the marginal tax rate is 30%, the company's WACC is closest to:A.5.51%.B.6.52%.C.7.00%.