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Information concerning the capital structure of Praxit Finance Company is as follows: The current risk - free rate is 7 , 2 5 % ,
Information concerning the capital structure of Praxit Finance Company is as follows: The current riskfree rate is while the current market portfolio return is The companys beta is The preference share capital was issued at R per share. An annual dividend is paid at the end of each year. The shares are currently trading at R per share. Debentures due in years with a before tax cost of The company tax rate is REQUIRED: Calculate the cost of: Ordinary shares Preference shares Debt Using the table below and the given market values of every form of capital, calculate the weighted average cost of capital WACC using your answers from above. Capital source Market Value Weighting Cost Weighted Cost Ordinary Shares Preference Shares Debt Total MARKET VALUES OWNERS EQUITY Ordinary Shares R Preference Shares R LONGTERM DEBT Debentures R
Information concerning the capital structure of Praxit Finance Company is as follows:
The current riskfree rate is while the current market portfolio return
is The companys beta is
The preference share capital was issued at R per share. An annual dividend is paid at
the end of each year. The shares are currently trading at R per share.
Debentures due in years with a before tax cost of
The company tax rate is
REQUIRED:
Calculate the cost of:
Ordinary shares
Preference shares
Debt
Using the table below and the given market values of every form of capital, calculate the
weighted average cost of capital WACC using your answers from above.
Capital source Market Value Weighting Cost Weighted Cost
Ordinary Shares
Preference Shares
Debt
Total
MARKET VALUES
OWNERS EQUITY
Ordinary Shares R
Preference Shares R
LONGTERM DEBT
Debentures R
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