Answer:
8.47%
Step-by-step explanation:
WACC = (Cost of equity * Weight of equity) + (Cost of debt capital * Weight of debt capital)*(1 - tax)
WACC = (11*(1/(0.7+1)) + (7.5*(0.7/(1+0.7))*(1-.35)
WACC = (11*0.5882) + (7.5*0.4118*0.65)
WACC = 6.4702 + 2.007525
WACC = 8.477725
WACC = 8.47%
So, the weighted average cost of capital of company is 8.47%.