A retail company holds 60% in debt and has total assets of EUR 500,000 in 2020. The
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A retail company holds 60% in debt and has total assets of EUR 500,000 in 2020. The company's cost of equity is 5% and its cost of debt 2%, and its corporate tax rate is 25%. What is the company's WACC (Weighted average cost of capital)? If the ROI (return on investment) is 76%, would you recommend to buy the company share and why?
Related Book For
Principles of Managerial Finance
ISBN: 978-1408271582
Arab World Edition
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
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