What is the company's actual rate of return based off information below: WACC = ((E/V) * Re) + [((D/V) * Rd)*(1-T)] D = market value of debt = $600,000 = nbr of bonds X market price per bond E =...

Extracted text: What is the company's actual rate of return based off information below: WACC = ((E/V) * Re) + [((D/V) * Rd)*(1-T)] D = market value of debt = $600,000 = nbr of bonds X market price per bond E = market value of equity =$400,000 = nbr of common shares X market price of each stock or share V = D +E = $1,000,000 = value of the company Rd = return or cost of debt = .05 = yield to maturity, market rate Re = return or cost of equity = .06 t = corporate tax rate = 35% WACC = ((600,000/1,000,000) x .06) + [(400,000/1,000,000) x .05) * (1-0.35))] = 0.049 = 4.9% TFC should expand. Their weighted average cost of capital is 4.9%. This means that for every $1 TFC raises, it pays their investors $0.05; leaving them $0.95 on the dollar. %3D