Answer:
11.75%
Explanation:
In order to calculate the weighted average cost of capital (wacc), we can use the following formula:
wacc = (weight of debt x cost of debt after tax) + (weight of equity x cost of equity)
In this question, since the information about cost of debt and cost of equity are missing, let us assume the cost of debt = 10%, and cost of equity = 15%. The calculated wacc will be equal to:
wacc = [ (1-0.35) x 0.1 ] + [ 0.35 x 0.15 ]
= 11.75%
