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After careful analysis, Excellence Berhad has determined its optimal capital structure as shown in the following table. The cost of debt is estimated to be
After careful analysis, Excellence Berhad has determined its optimal capital structure as shown in the following table. The cost of debt is estimated to be \7.2; the cost of preference share is estimated to be \13.5, the cost of retained earnings is estimated to be \16; and the cost of new ordinary share is estimated to be \18. All of these are after-tax rates. Excellence Berhad expects to have a significant amount of retained earnings available and does not intend to sell any new ordinary share. Calculate the WACC of Excellence Berhad
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