Question
A company needed to purchase a set of machines for 400 thousand dinars, and wanted to provide them as follows: 1- 100,000 dinars long-term loans
A company needed to purchase a set of machines for 400 thousand dinars, and wanted to provide them as follows: 1- 100,000 dinars long-term loans at 10% interest 2- 200,000 dinars new ordinary shares, price per share 10 dinars. C- 100,000 dinars preferred shares. The nominal value of the share is 100 dinars and the dividend is 9%. The Company will incur commissions and expenses for issuing preferred stock at a rate of 10%. If you know that the risk-free rate of return is 6%, the market rate of return is 10%, the company's beta is 1.1, and the income tax rate is 20%.
Required: Find the weighted average cost of capital.
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
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