Question
Willy Wonka has a capital structure as follows in millions pounds: (i) 10m ordinary shares = $4; (ii) Reserves = $17; (iii) 13% irredeemable loan
Willy Wonka has a capital structure as follows in millions pounds: (i) 10m ordinary shares = $4; (ii) Reserves = $17; (iii) 13% irredeemable loan notes = $5. In addition, the ordinary shares are currently quoted at $8, and the loan notes at $93. Willy Wonka has a cost of equity of 14% and pays a corporation tax of 30%. What is Willy Wonkas weighted average cost of capital (WACC)?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
1st Edition
1567930905, 978-1567930900
