A private equity firm is subject to 30% income tax rate. To invest in a hotel it raises equity and debt capital (loan) at 15% and 5% costs respectively. The debt-to-equity ratio for the project is 1.5:1.What is the weight of debt?What is the before tax WACC?What is the after tax WACC?

A private equity firm is subject to 30% income tax rate. To invest in a hotel it raises equity and debt capital (loan) at 15% and 5% costs respectively. The debt-to-equity ratio for the project is 1.5:1.What is the weight of debt?What is the before tax WACC?What is the after tax WACC?

A private equity firm is subject to 30% income tax rate. To invest in a hotel it raises equity and debt capital (loan) at 15% and 5% costs respectively. The debt-to-equity ratio for the project is 1.5:1.What is the weight of debt?What is the before tax WACC?What is the after tax WACC?