 WACC = [D/V (1-t) X Rd] + [E/V X Re]

E =公司股本的总市值

V =公司总价值

Rd =债务成本

Re =公司股本成本

WACC = 6528,000,000 / 56,836,240,000 (1 – .30) 4.83% + (50,308,240,000 / 56,836,240,000) 4.78%

WACC = 4.62%

[长期负债/总资本x100]

= 5,895,000,000 / (24,781,000,000 + 5,895,000,000) x 100

= 19.22%

The formula for calculating the weighted average cost of capital is as follows:
WACC = [D/V (1-t) X Rd] + [E/V X Re]
Where, D = Total market price of debt of the company
E = Total market value of equity of the company
V = Total value of the company
Rd = cost of the debt
Re = cost of equity of the company
Market Value of Debt = 6,528,000,000
Market Value of Equity = 50,308,240,000
Market Value of the Firm = 56,836,240,000
Cost of Debt = 4.83 %
Cost of Equity = 4.78 %
Tax Rate = 30 %
WACC = 6,528,000,000 / 56,836,240,000 (1 – .30) 4.83 % + (50,308,240,000 / 56,836,240,000) 4.78 %
WACC = 4.62 %

Gearing ratio is calculated by the formula:
[Long term liabilities / total capital employed x 100]
= 5,895,000,000 / (24,781,000,000 + 5,895,000,000) x 100
= 19.22%
A gearing ratio reflects the total financial position of the Wesfarmers Company, as it considers the total debt of the company as compared to its total equity. The main difficulties in finding gearing ratio is to analyse the total debts of the company containing risk factor. As there are some debts, which carry very high amount of future uncertainty but we consider them in less or no risk debts or vice versa (Ardalan, 2016). Some of the companies disclose their gearing ratio in an effective manner, which attracts the capital investors but later they have to bear heavy losses due to it.