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Question 8 [15 Marks] Sibanye Gold Company has estimated the cost of debt and equity capital (with bankruptcy and agency costs) for various proportions of

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Question 8 [15 Marks] Sibanye Gold Company has estimated the cost of debt and equity capital (with bankruptcy and agency costs) for various proportions of debt in its capital structure. Debt Ratio (B/(B+E)] 0.00 Pretax Cost of Debt (kd) (a) Cost of Equity (ke) (by 130 015 (c) v Weighted Average Cost of Capital 12% 11 68 (d) 11.775 12.64 8.0 030 045 (f) (e) 14 0 145 165 190 Required: 8 1. Fill in the missing entries in the table. [12] 82 Determine the capital structure (that is debt ratio) that minimizes the company's weighted average cost of capital [3] X0,145

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