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Q#3 -A The ASF company cost of common equity is 16 % its before tax cost of debts is 13% and its marginal tax rate

Q#3 -A The ASF company cost of common equity is 16 % its before tax cost of debts is 13% and its marginal tax rate is 40 % the stock sells at book value using the following balance sheet calculate ASF after tax weighted average cost of capital.

Assets liabilities and equity

Cash ?

A/c receivable ?

Inventories ? long term debts 1,152

Plant and equipment ? Equity ?

Total assets 2,880 Liabilities and equity ?

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