Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question GTZ has a cost of equity of 16%. It has two million shares in issue trading at $1.50 per share. GTZ also has $1.2m
Question
GTZ has a cost of equity of 16%. It has two million shares in issue trading at $1.50 per share. GTZ also has $1.2m of bank borrowings in issue. The pre-tax cost of the bank borrowings is 10 per cent, and the post-tax cost of the bank borrowing is 7%.
What is the WACC of GTZ?
answer: 13.43%.
please show full workings
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started