## Suppose debt is 20% of a firm’s capital structure and equity is 80%. The required return on the firm’s debt is 5%, and the required return on the firm’s equity is 12%. Suppose there is zero corporate tax. What is the firm’s weighted average cost of capital (WACC)?

3. Question 3 Suppose debt is 20% of a firm’s capital structure and equity is 80%. The required return on the firm’s debt is 5%, and the required return on…