Question
please do it in excel and show the calculation in details **digits of id number 20** Haval Limited can borrow at an annual interest rate
please do it in excel and show the calculation in details
**digits of id number 20**
Haval Limited can borrow at an annual interest rate of 11% compounded semiannually with a compensating balance requirement of 4%. It can issue 13% Taka 100 preferred stock at Taka (100 + Last two digits of your ID Number) where floatation cost is 8%. The risk free rate is 4.5% and the market return is 15%. The firms beta is 1.12. Tax rate is 30%. Expected Capital Components and their mix:
Debt | Taka 1600 million |
Preferred Stock | Taka 1400 million |
Common Equity Taka 2000 million a. Estimate the cost of debt, cost of preferred stock and cost of retained earnings. b. Estimate the WACC.
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