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Exercise 1. A retail company holds 60% in debt and has total assets of EUR 500,000 in 2020. The company's cost of equity is 5%
Exercise 1. A retail company holds 60% in debt and has total assets of EUR 500,000 in 2020. The company's cost of equity is 5% and its cost of debt 2%, and its corporate tax rate is 25%. What is the company's WACC (Weighted average cost of capital)? If the ROI (return on investment) is 76%, would you recommend to buy the company share and why
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