REQUIRED Use the information provided below to calculate the weighted average cost of capital ( expressed as

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Question:

REQUIRED

Use the information provided below to calculate the weighted average cost of capital

(

expressed as a percentage to two decimal places

) .

(4

marks

)

INFORMATION

The optimal capital share of Yoko Limited is

60 %

ordinary share,

30 %

preference share and

10 %

debt financing. The pre

-

tax costs of capital for ordinary shares, preference shares and debt are

19 %, 16 %

and

20 %

respectively. The tax rate is

27 % .

Posted Date: May 18, 2024 09:08 PM

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REQUIRED Use the information provided below to calculate the weighted average cost of capital ( expressed as

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