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Neo Resources is seeking to invest R 1 0 million in a new mining project to expand its gold production capacity. the management of the
Neo Resources is seeking to invest R million in a new mining project to expand its gold production capacity. the management of the company prefers to maintain the present debt, equity and preference shares capital structure. debt financing can be obtained by issuing a year R bond. the current price of bond is R and pays coupons. Neo Resources has a beta of the expected return on the market portfolio is and the current risk free rate is the company is contemplating issuing preference shares, which are expected to sell for a par value of R per share. the cost of issuing and selling the share is expected to be the tax rate is Required calculate Neo resources's components costs calculate the company's weighted average cost of capital.
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