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The Prajwol Construction Ltd (PCL) is a property developer and building contractor. The company has two sources of long-term capital, debt and equity. The market

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The Prajwol Construction Ltd (PCL) is a property developer and building contractor. The company has two sources of long-term capital, debt and equity. The market interest rate on the company's $140 million of long- term debt is 10% per annum. The debt is perpetual also paying 8%. The company's tax rate is 30 per cent The cost of the company's equity capital is 18%, and the current share price is $15 with 10 million shares outstanding. The following data relate to the two divisions of the PCL for the past year: Total Assets 174,000,000 Real Estate Division Current liabilities 8,700,000 Operating Profit 30,000,000 Construction Division 130,500,000 5,800,000 25,000,000 (a) Complete the table below to find the WACC of PCL (b) Calculate the EVA of the two divisions Weight of Debt (round to 2 d.p.) [Choose Weight of Equity (Round to 2 d.p.) [Choose] After tax Cost of debt (Rd) (round to 2 d.p.) [Choose WACC (round to 2 d.p.) [ Choose EVA Real Estate Division [Choose)

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