Question: 6. Lummer plc has a current and target leverage ratio of 0.8 (debt/total assets), the cost of equity of 20 per cent and the longterm

6. Lummer plc has a current and target leverage ratio of

6. Lummer plc has a current and target leverage ratio of 0.8 (debt/total assets), the cost of equity of 20 per cent and the longterm finance cost from loans is 16 per cent. The corporation tax rate is 35 per cent. a) What is the weighted average cost of capital (WACC)

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