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Solve quickly 10. Isfahan LLC is financed through bonds (debt capital) and ordinary shares. The bonds raised a total fund of OMR 50,000,000. The cost
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10. Isfahan LLC is financed through bonds (debt capital) and ordinary shares. The bonds raised a total fund of OMR 50,000,000. The cost of bonds (debt capital) before tax is estimated to be 8 per cent. The company's shares have a market value of OMR 100,000,000, the return on risk-free government securities is 6 per cent and the risk premium for an average risk share has been 7 per cent. Isfahan's shares have a beta of 0.8.The corporate tax is 33% per cent. The net asset figure in balance sheet of Isfahan LLC is OMR 4,500,000 million. Calculate the weighted average cost of capital. 11Step by Step Solution
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Authors: Jack Jones
1st Edition
1545269920, 978-1545269923
