A company has an annual post tax money cost of capital of 18%. If inflation is 5%

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A company has an annual post tax money cost of capital of 18%.

If inflation is 5% per annum, the company’s annual post tax real cost of capital is closest to:

A 12%.

B 13%.

C 23%.

D 24%.

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Management Accounting

ISBN: 9780273718451

2nd Edition

Authors: Pauline Weetman

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Question Posted: Feb 09, 2024 05:25 AM

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A company has an annual post tax money cost of capital of 18%. If inflation is 5%

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To calculate the real cost of capital you would use the Fisher equation which is u...View the full answer

Management Accounting

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