ABC Company Ltd has 1.4 million shares common valued atTshs200 per share =Tshs280 million. Debt has face value ofTshs50 million and trades at 93% of face (Tshs46.5 million) in the market. Total market value of both equity + debt thus =Tshs326.5 million. Equity % = .8576and Debt % = .1424

-Risk free rate is 4%, risk premium =7% and ABC's = 0.74

 

What is WACC?

 

Answer rating: 100% (QA)

The Weighted Average Cost of Capital WACC represents the average rate of return a company is expecte... View the full answer