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Calculate the WACC (Weighted Average Capital Costs) of the company Fischer and Friends LTD given the current financial structure Equity M 1 Ordinary Shares 1000
Calculate the WACC (Weighted Average Capital Costs) of the company Fischer and Friends LTD given the current financial structure
Equity | M |
1 Ordinary Shares | 1000 |
1 6% Preference Shares | 225 |
Retained Profits | 700 |
Total | 1925 |
Debt | |
Unsecured 6% Bond 2025 | 500 |
Secured Loan (Floating rate 7%) | 200 |
Secured Loan (6.25% PA+ Base 0.1%) | 312.734513 |
Total | 700 |
Grand Total | 2934.734513 |
Note that in the previous year profit before tax was 500 M
CAPM=10.38768%
Also Ordinary shareholders have previously received the following dividends
3 Years ago - 5%
2 Years ago - 6%
1 Year ago 6.5%
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