ABC is financed by One million ordinary shares (nominal value $1 00), which are expected to grow by 10 of the previous year dividend each year, the current market price of the share is $1 80 $800,000 (nominal) loan notes which pay interest at the end of year of 11 (of nominal) for 3 years, after wh...

Cost of equity D1P0g 11810 1555 Co ...

ABC is financed by: One million ordinary shares (nominal value $1.00), which are expected to grow by

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ABC is financed by:
One million ordinary shares (nominal value $1.00), which are expected to grow by 10% of the previous year dividend each year, the current market price of the share is $1.80. $800,000 (nominal) loan notes which pay interest at the end of year of 11% (of nominal) for 3 years, after which the loan notes will be redeemed at nominal value. Currently the loan notes are quoted in capital market at $95 (per $100 nominal). The corporation tax is 30%. Calculate the Weighted Cost of Capital (WACC)