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SABC Limited has the following information: The market values of the different components are : Debt (long-term loans): R200m. and Ordinary Shares: R500m. The current
SABC Limited has the following information: The market values of the different components are: Debt (long-term loans): R200m.
and Ordinary Shares: R500m.
The current (market related) cost of the different components was already calculated as being.
Debt (long-term loan) 6% (after-tax)
and Ordinary Shares: 14%.
Required: Calculate the WACC of SABC Limited by:
a. Using the mathematical formula
b. Completing the WACC table
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