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Find WACC of the project? Debt by Asset ? CAPM Cost Equity? Market Capitalisation (Full Float) ? PCA Ltd is a listed firm and considering
Find
WACC of the project?
Debt by Asset ?
CAPM Cost Equity?
Market Capitalisation (Full Float) ?
PCA Ltd is a listed firm and considering to invest in a new project. The new 6 points project would be having the same business risk and the same leverage as that of the company. Please consider the information below and answer the following question assuming that the CAPM holds. Relevant information Risk Free Rate Historical standard deviation of the market Market Risk Premium Last year market return Tax Rate of PCA Ltd Cost of debt of PCA Ltd Beta of PCA Ltd. Value of Long Term Debt of PCA Ltd No. of shares outstanding for PCA Ltd Book value per share of shares of PCA Ltd Average per share price of shares of PCA Ltd 5.00% 10.00% 10.00% 25.60% 30.00% 10.00% 1.5 15,00,00,000 1,00,00,000 10 17.5 1,50,00,000 17,50,00,000 100000000 46.15% 42.18% 36.73% 20.00% WACC of the new project Debt by Asset O CAPM Cost of Equity Market capitalisation (Full float) O
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