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dont know whether the answers are correct A Moving to another question will save this response. Question 12 kQuestion 12 of 14 Seoul Ltd's capital

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A Moving to another question will save this response. Question 12 kQuestion 12 of 14 Seoul Ltd's capital structure is as follows 4 points Saved Debt 35% Preference Shares 15% Ordinary Share Capital 50% The after-tax cost of debt is 6.5%: the cost of preference shares is 11 and the cost of ordinary share equity is 10%. As an alternatve to the existing capital structure for Seoul an outside consultant has suggested the following modifications Debt 50% Preference Shares 15% Ordinary Share Capital 35% Under this new and more debt-oriented arrangement, the after-tax cost of debt is 7.5%; the cost of preference shares is 11%: and the cost of equity is 15.6% . Case sensitive: Type in 12.00 for 12.00% a. Calculate Seoul's existing weighted average cost of capital (WACC) Your answer: a. 8.92 10.86 b. Recalculate Seoul's weighted average cost of capital (WACC), using the capital structure suggested by the outside consultant. Your answer: b. 6. Case sensitive: Type in 12.00 for 12.00% kQuestion 12 of 14 Moving to another question will save this response. DLL

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