Question
Suppose the current capital structure consist of following figures. Equity - 0.6 at Cost of equity (14%) Long term Debt - 0.3 at concessionary
Suppose the current capital structure consist of following figures.
Equity - 0.6 at Cost of equity (14%)
Long term Debt - 0.3 at concessionary rate of 8% (Pre tax)
Long term Debt - 0.1 at normal rate of 11% (Pre tax)
Tax rate is 28%
How to calculate WACC? (Do we have to take average rate of Debt, or consider debt items separately)
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Capital Structure Equity 06 Cost of Equity 14 LongTerm Debt 1 03 with a concessionary rate of 8 pret...
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
