=+3 a (Examination level) Hose ple presently has a capital structure which is 30 per cent debt
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(Examination level) Hose ple presently has a capital structure which is 30 per cent debt and 70 per cent equity. The cost of debt (i.e borrowings) before taxes is 9 per cent and that for equity is 15 per cent. The firm's future cash flows, after tax but before interest, are expected to be a perpetuity of £750,000. The tax rate is 30 per cent.
Calculate the WACC and the value of the firm.
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Corporate Financial Management And How To Write Essays And Assignments
ISBN: 978-1405882897
Coursepack Edition
Authors: Glen Arnold
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