A company will be financing its operations with and a capital budget is P40,000,000 and a debt-to-equity
Fantastic news! We've Found the answer you've been seeking!
Question:
A company will be financing its operations with and a capital budget is P40,000,000 and a debt-to-equity ratio of 1. The interest rate on company's debt is 10%. The expected return on equity by the shareholders is 16.66% while the budgeted net income by management is P6,000,000. Assuming that the company's tax rate is 40%, compute the weighted average cost of capital.
Posted Date: