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Having issues with this problem for After tax Weighted Average Cost of Capital. Could you please help?

Having issues with this problem for After tax Weighted Average Cost of Capital. Could you please help?


Here is the given information Given Information

Cost of Debt (Before tax)

9.00%

Cost of Equity

16.00%

Percentage of debt capital

60.00%

Percentage of Equity capital

40.00%

Tax rate

35.00%

Cost of Debt (After tax)

6.50%

Need to figure out the "After Tax Weighted Average Cost of Capital with a 60% Debit and 40% Equity Financing Structure.

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