A) WACC

My Date of Birth: 02/06/1993

IK age considering 68 from 1952.

Equity = 1993
Debt = 996.5
Interest rate= Rd= 12%
Cost of equity= Rl= 15.5
Tax rate =34%

WACC= (wt x cost of capital) + (wt x cost of debt) 1-t

= (0.6666 x 0.155) + (0.3333 x 0.12) 1-0.34
= 0.1297

WACC =12.97 %

B) Annual amount of interest:

Amount of annual interest =996.5 x 0.12
Amount of annual interest =119.58

C) Amount saved due to interest = 119.58 x 0.34

Amount saved due to interest = 40.65 million