Question
ABC Company Ltd has 1.4 million shares common valued atTshs200 per share =Tshs280 million. Debt has face value ofTshs50 million and trades at 93% of
ABC Company Ltd has 1.4 million shares common valued atTshs200 per share =Tshs280 million. Debt has face value ofTshs50 million and trades at 93% of face (Tshs46.5 million) in the market. Total market value of both equity + debt thus =Tshs326.5 million. Equity % = .8576and Debt % = .1424
-Risk free rate is 4%, risk premium =7% and ABC's = 0.74
What is WACC?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The Weighted Average Cost of Capital WACC represents the average rate of return a company is expecte...
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
