Coles Group has $50 million capital, which includes $15 million debt. Shareholders' required rate of return is
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Coles Group has $50 million capital, which includes $15 million debt. Shareholders' required rate of return is 7% p.a. Cost of debt is 5%. $2 million of debt has been repaid when due. Interest charged on debt reduces by 1% p.a due to Coles Group's higher credit rating. What is Coles Group's new WACC?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date: