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note , chosen answer for box one is mistake SIYABONGA Limited is planning for possible variation in its level of financing. The firm has decided
note , chosen answer for box one is mistake
SIYABONGA Limited is planning for possible variation in its level of financing. The firm has decided to use external equity financing when its retained earnings of R100,000,000 is exhausted. The estimated costs of the retained earnings and new ordinary share are 12% and 14% respectively. Subsequently, the firm plans to borrow additional debt at an after-tax cost of 11% when its initial 9%,R310,000,000 debt is exhausted. If the firm's debt to equity ratio is 50%, the ordinary equity and debt break points are respectively while the WACC associated with the second level of financing is (round off all workings to 1 decimal place) Step by Step Solution
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