CCC = [Wd x cost of debt x (1 – T)] + (We x Cost of equity)   CCC = [0.35 x 0.075 x (1-0)] + (0.65 x 0.13)   0.02625 + 0.0845 = 0.347   0.347 x 100 = 34.7%   CCC = 34.7%   Is this correct?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
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CCC = [Wd x cost of debt x (1 – T)] + (We x Cost of equity)

 

CCC = [0.35 x 0.075 x (1-0)] + (0.65 x 0.13)

 

0.02625 + 0.0845 = 0.347

 

0.347 x 100 = 34.7%

 

CCC = 34.7%

 

Is this correct? 

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