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1. Calculate the weighted average cost of capital (WACC), considering that Company W has a total value of debt and equity of EUR 1,246,890, and
| 1. Calculate the weighted average cost of capital (WACC), considering that Company W has a total value of debt and equity of EUR 1,246,890, and hold 40% in debt. | ||||||||||
| The cost of equity is of 6% and the company borrows at a cost of 3%. Company D pays 35% tax. | ||||||||||
| An investor bought shares of Company W and as a return on investment of 3%, did he made a cost-effective decision? | ||||||||||
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Contemporary Islamic Finance
Authors: Karen Hunt-Ahmed
1st Edition
1118180909, 978-1118180907
