The following information relates to the a division of eco enterprises:

interest rate on debt capital: 9%
cost of equity capital: 13%
market value of debt capital: $49 million
market value of equity capital: $79 million
income tax rate: 40%

on the basis of this information, atlas's weighted-average cost of capital is closest to (do not round your intermediate calculations.):

WACC = Ke (E/V) + kd (D/V)(1-T)

              WACC = 13(79/128) + 9(49/128)(1-0.4)

              WACC = 8.0234375 + 3.4453125(0.6)

              WACC = 10.09%

The weighted average cost of capital of the firm is 10.09%

Explanation: Atlas's weighted average cost of capital is equal to cost of equity multiplied by the ratio of equity to value of the company plus after-tax cost of debt multiplied by the ratio of debt to value of the company.

In an effective OBM company, communication is in all direction, not the conventional up, down or sideways.  It is focused on improving the company economics.  And as my partner, John Case says, (the individual who coined the phrase open-book management, implementation should start with a focus on improving the company economics, not sharing financials.

Explanation:

These Forbes and Harvard Business Review articles provide more background:  

https://hbr.org/2018/01/more-than-a-paycheck  http://www.forbes.com/sites/fotschcase/2016/05/31/engage-your-employees-in-making-money/