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The question is complete just like that Question 8 [15 Marks) Sibanye Gold Company has estimated the cost of debt and equity capital (with bankruptcy
The question is complete just like that
Question 8 [15 Marks) Sibanye Gold Company has estimated the cost of debt and equity capital (with bankruptcy and agency costs) for various proportions of debt in its capital structure. Pretax Cost of Debt (kd) Cost of Equity (ke) Debt Ratio (B/(B+E)] 0.00 015 Weighted Average cost of Capital 12% 11 68 030 8.0 130 145 165 190 045 11.775 74 12.64 Required: 81. Fill in the missing entries in the table. [12] 82 Determine the capital structure (that is debt ratio) that minimizes the company's weighted average cost of capital [3] Question 8 [15 Marks) Sibanye Gold Company has estimated the cost of debt and equity capital (with bankruptcy and agency costs) for various proportions of debt in its capital structure. Pretax Cost of Debt (kd) Cost of Equity (ke) Debt Ratio (B/(B+E)] 0.00 015 Weighted Average cost of Capital 12% 11 68 030 8.0 130 145 165 190 045 11.775 74 12.64 Required: 81. Fill in the missing entries in the table. [12] 82 Determine the capital structure (that is debt ratio) that minimizes the company's weighted average cost of capital [3]Step by Step Solution
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