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please can you help me with these two questions. thanks! 7 ed Key Stores Ltd has requested you to provide them with a calculation of
please can you help me with these two questions. thanks!
7 ed Key Stores Ltd has requested you to provide them with a calculation of their cost of debt. They provide you with the following information: long-term loans ABSA of R750 000 with an interest rate of 7,9%, asset-based finance loan from Sasfin for R275 000 at an interest rate of 9.75%. Assume the tax rate is 28%. What is the cost of debt for Key Stores? out of O a. 6,95% n O b. 6,05% O c. 7,25% O d. 5,92% 8 Pencils Ltd has a market value of debt of R295 000 and a market value of equity of R315 000. The pre-tax cost of debt is 8.25%, while equity has a cost of 14.5%. Calculate the correct weighted average cost of capital for Pencils Ltd. The tax rate is 28%. but of O a. 10,63% O b. 11,23% O c. 10,36% Od 10,95%Step by Step Solution
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