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Klar COF October 11th 2021 Dividend 6 M&A 1 M&A 2 CapStructure 8 Dividend 3 Carstens Metallica AB was a firm with 100 million shares

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Klar COF October 11th 2021 Dividend 6 M&A 1 M&A 2 CapStructure 8 Dividend 3 Carstens Metallica AB was a firm with 100 million shares trading at SEK 18share, debt outstanding of SEK 600 million and a cost of capital of 10%, prior to a recapitalization It has just borrowed SEK 920 million and completed a buyback of 40 million shares SEK 21share. If the remaining shares tradeSEK 28 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company table growth, prowing 2% a year in perpetuilty) Klar COF October 11th 2021 Dividend 6 M&A 1 M&A 2 CapStructure 8 Dividend 3 Carstens Metallica AB was a firm with 100 million shares trading at SEK 18share, debt outstanding of SEK 600 million and a cost of capital of 10%, prior to a recapitalization It has just borrowed SEK 920 million and completed a buyback of 40 million shares SEK 21share. If the remaining shares tradeSEK 28 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company table growth, prowing 2% a year in perpetuilty)

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