Youventure (PTY)(LTD) is a company That is looking to invest into other start-up companies. The Capital Structure Consists of Debt and equity (ordinary shares). You are provided the following information about Youventure (PTY) (LTD): * IT Has a beta of 0.85 *The Stock exchange all share index isproviding a return of 11,47% *Treasury bills are trading at 7,5% *the latest Share price of Youventure is R35 *there are 1Million Authorized ordinary Shares and 500000 Issued Shares in Youventure *The cost of debt is 12% before Tax *The tax rate is 28% The market value of the Company's Debt is 12% before tax *The Tax Rate is 28% *The market value of the company's debt is R22 million

Task: Calculate the weighted Average cost of Capital for youventure (PTY)(LTD), and critically discuss three disadvantages of using this rate to assess projects.

Management Management Accounting exam 27 November 2021 Youventure (PTY) (UD) is a company that is looking to invest into other start-up companies. The company capital structure consists of debt and equity (ordinary shares). You are provided the following information about Youventure (PTY) (LTD): . It has a beta of 0.85 . The stock exchange all share index is providing a return of 11,47% Treasury bills are trading at 7,5% The latest share price of Youventure is R35 . There are 1 million authorized ordinary shares and 500 000 issued shares in Youventure The cost of debt is 12% before tax . The tax rate is 28% The market value of the company's debt is R22 million Task: Calculate the weighted Average cost of capital for Youventure (PTY) (LTD), and critically discuss three disadvantages of using this rate to assess projects. E 2 A- BI