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C. The capital structure for the Daun Kering Berhad (0KB) is provided here. You as the financial manager of this firm would like to maintain
C. The capital structure for the Daun Kering Berhad (0KB) is provided here. You as the financial manager of this firm would like to maintain its debt structure in the future. If the firm has a 5.5 percent after-tax cost of debt, a 11.5 percent cost of preferred stock, and a 15 percent cost of common stock, what is the Weighted Average Cost of Capital (WACC) for DKB?
Capital Structure (RM'OOO) | |
Borrowinqs | 10,000 |
Preferred Stocks | 3,000 |
Common Stocks | 37,000 |
Total | 50,000 |
Show your working in calculating WACC. (5 Marks)
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