You have been advised that the cost of ordinary equity is 8%, preference shares are 10% and pre-tax cost of debt is 7%. The weights
You have been advised that the cost of ordinary equity is 8%, preference shares are 10% and pre-tax cost of debt is 7%. The weights of preference shares is 25% and ordinary shares are 45%. The tax rate is 20%. Calculate the after tax Weighted Average Cost of Capital (WACC). (3 Marks) Please answer as a decimal to 4 decimal places
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Authors: Maurice D Levi
5th Edition
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