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From the below figures, calculate WACC and annual cashflows required by its capital providers. Interest rate = 0.10 Statutory company tax rate = 0.30 Proportion
- From the below figures, calculate WACC and annual cashflows required by its capital providers.
Interest rate = 0.10
Statutory company tax rate = 0.30
Proportion of statutory company tax rate claimed by shareholders = 0.60
Market value of debt = 20 000 000
Cost of equity capital = 0.20
Market value of equity = 20 000 000
- What are the main difficulties in calculating cost of capital for diversified companies?
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