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If Rohan requires a capital structure of 14% debt, 16% preference shares and the balance ordinary shares. What is Rohans weighted average cost of capital
- If Rohan requires a capital structure of 14% debt, 16% preference shares and the balance ordinary shares. What is Rohan’s weighted average cost of capital (WACC), given a 30% tax rate and return on preference shares 10.5%, equity 21.3% and debt 6.1%? Record your answer in decimals and to four decimal places 0.0000, e.g., your answer should be 0.034 not 3.40%
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