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Calculate the WACC of AOI Ltd, using the following information. Extract from statement of financial performance Liabilities Shareholders' funds Additional information The ordinary shares are
Calculate the WACC of AOI Ltd, using the following information. Extract from statement of financial performance Liabilities Shareholders' funds Additional information The ordinary shares are currently trading at $4.2 per share. Commonwealth government bonds return is 5% p.a. compounded annually. The return on the market portfolio is 13.5%. AOI's beta is 1.25. Its debentures are priced at 96.5. The current return on AOI debenture is 2% above the government bond rate. No company or personal taxes are levied. The existing capital structure is unlikely to change
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