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Question 1: Calculate the Weighted Average Cost of Capital (WACC) for McCormick and Company using the formula WACC = (WD x RD x (1-T)) + (WS x Rs)
Note that --
Rs = the cost of equity
Rd = the cost of debt
T = the tax rate
WD = Value of debt / (Value of debt plus value of equity)
WS = Value of equity / (Value of debt plus value of equity) **Note that the weight of debt plus the weight of equity must total to 100%, as there are only two components in the capital structure.**
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