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i need to know how this person collected these dats its for Norman harvey company simplify it for me how and where he got the
i need to know how this person collected these dats its for Norman harvey company
simplify it for me how and where he got the percentage for current and non current liabilities
Answer NO. #3 Now we will calculate the cost of debt for Harvey Norman Company, where we data for weights of current liability and non-current liability was collected from the annual report 2018 of the company. For taking rates for both types of the liability, we analysed the current business loan rates for sizes that are equal to Harvey Norman debts, where the rates for short-term debt was 1.9% and the interest for the non-current or long-term debt was 2.5%. So, the weights of current liability to total liability was 50.6% and the weight of non-current debt was 49.4%. So the weighted average cost of debt for the Harvey Norman was 2.20%. Cost of Debt for Harvey Interest rate Current liabilities Non-current Liabilities Weights Current Liability Non-current Liabilities Cost of Debt 1.90% 2.50% Book Value 50.62% 49.38% 2.20% 2.20% Step by Step Solution
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