Woodside Petroleum Ltd

Part A. Compute the after tax cost of retained earnings, assuming the same dividend growth rate as per Question 2.

Part B. Computer the current average cost of debt.

Part C. Computer the cost of new share issues, assuming issue at current market price, and a 2% issue costs and company tax rate of 25%.

Part D. Computer the weighted average cost of capital.

Part E. Compute the financial leverage.

Part F. Comment on the appropriateness of the financial leverage of the company in no more than 100 words.