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What is finance? (calculation) Nike has $15 million capital, which includes $10 million debt. Shareholders' required rate of return is 10% p.a. Creditors charge
What is finance? (calculation) Nike has $15 million capital, which includes $10 million debt. Shareholders' required rate of return is 10% p.a. Creditors charge 6% p.a. interest. 1. Calculate Nike's Weighted Average Cost of Capital. Answer (2.5 marks) 2. $2 million of debt has been repaid when due. Interest charged on debt reduces by 1% p.a due to Nike's higher credit rating. What is Nike's new WACC?Answer: (2.5 marks)
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
