Consider the following information for Intertec Co: Common share capital: R250 000 5% preference shares: R150 000 Long term debt/loan: R100 000 The cost of
Consider the following information for Intertec Co:
Common share capital: R250 000
5% preference shares: R150 000
Long term debt/loan: R100 000
The cost of equity is 5%, while the company pays 15% on the bank loan. It pays 25% income tax.
Calculate the weighted average cost of capital (WACC).
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Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
