Question
Omni Consumer Products (OCP) has equity with a market value of $900 million and debt with a value of $600 million. If OCPs cost of
Omni Consumer Products (OCP) has equity with a market value of $900 million and debt with a value of $600 million. If OCPs cost of equity is 18% and its weighted average cost of capital is 13%, what is OCPs cost of debt? Assume no taxes.
a. 5.5%
b. 8.0%
c. 11.5%
d. 16.3%
e. 23.8%
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
