Question
Company WACC is 20%. The debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW DO YOU
Company WACC is 20%. The debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW DO YOU CALCULATE THIS WITH EXCEL AND USING EXCEL FORMULAS?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the cost of equity we can use the formula Cost of Equity WACC Weight of Debt Cost of De...
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Step: 2
Step: 3
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
