El Tcnicas is an energy supply company, quoted on the Bolsa de Madrid stock exchange. You are
Question:
El Técnicas is an energy supply company, quoted on the Bolsa de Madrid stock exchange. You are given the following information about the company:
Current dividend per share: five cents.
Current share price: 88 cents cum div.
Dividend growth rate: 7%.
Number of shares: 25 million.
€25 million 15% €100 irredeemable bonds.
Current market price: €110 per bond, ex int.
€10 million unquoted 12% irredeemable debt.
€3 million seven-year bank loan at Euribor +4%.
Euribor: 10%.
Tax: 35%.
Required: Calculate the WACC of El Técnicas.
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Related Book For 
Corporate Finance Theory And Practice
ISBN: 9781473758384
10th Edition
Authors: Steve Lumby, Chris Jones
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