A company has an annual post tax money cost of capital of 18%. If inflation is 5%
Question:
A company has an annual post tax money cost of capital of 18%.
If inflation is 5% per annum, the company’s annual post tax real cost of capital is closest to:
A 12%.
B 13%.
C 23%.
D 24%.
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To calculate the real cost of capital you would use the Fisher equation which is u...View the full answer
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