Question
Sharps Electrical currently has a market value of equity of $15 million and the total debt of $1 million. The cost of equity capital is
Sharps Electrical currently has a market value of equity of $15 million and the total debt of $1 million. The cost of equity capital is 19% and the cost of debt is 5%. If the company has a marginal tax of 24%. Calculate the weighted average cost of capital (WACC) for Sharps. (6 marks)
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Startup CFO The Finance Handbook For Your Growing Business
Authors: Kyle Brennan
1st Edition
1790959403, 978-1790959402
