Question
Uniplaza Ltd has 100 million shares of common stock valued at Ksh 20 per share. Debt has a book value of Ksh 950 million and
Uniplaza Ltd has 100 million shares of common stock valued at Ksh 20 per share. Debt has a book value of Ksh 950 million and trades at 195% of face value in the market. The Treasury bill rate is 11%, risk premium=7% and the company beta is 0.90. The applicable Tax rate is 30% and the current yield on market debt is 11%.
Required
Determine the weighted average cost of capital for Uniplaza Limited
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
