A company has a gearing ratio of 30%. The cost of equity is 20% and the cost of debt is 14%. If the corporate tax rate is 30%, calculate WACC. Current assets are financed through a mix of short-term...

A company has a gearing ratio of 30%. The cost of equity is 20% and the cost of debt is 14%. If the corporate tax rate is 30%, calculate WACC.

Current assets are financed through a mix of short-term and long-term funds. Discuss the statement and explain various approaches in this context.