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Q2: Calculate the weighted Average Cost of Capital (WACC) for the following capital structure: 20 marks) Issuing 200,000,000 common stocks with par value of EGP
Q2: Calculate the weighted Average Cost of Capital (WACC) for the following capital structure: 20 marks) Issuing 200,000,000 common stocks with par value of EGP 10 per share, and we have historical data for stock price and market price as below: EGX30 13927 13763 13009 9517 10514 DATE 31/12/2019 30/1/2020 27/2/2020 31/3/2020 30/4/2020 31/5/2020 30/6/2020 29/7/2020 31/8/2020 30/9/2020 28/10/2020 Stock A 10.06 12.34 12.27 10.50 10.79 11.02 13.33 12.92 10110 10750 10569 13.48 11366 10976 10496 11.70 11.84 Currency Interest Rate % Loans & Facilities Local Balance in EGP 31/10/2020 100,000,000 150,000,000 10.50% 11.00% Loans EGP 200,000,000 12.00% 14.25% 450,000,000 900,000,000 15.00% RFR before tax 15.5%, RM=17%, Income tax rate 22.5%, TAX rate for RFR 20%
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