Calculate the WACC with this information. Ordinary shares S$ 80,000 Long term debt S$ 30,000 Before-tax cost
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Question:
Calculate the WACC with this information.
Ordinary shares S$ 80,000
Long term debt S$ 30,000
Before-tax cost of debt 4%
Corporate tax rate 18%
Beta 1.3
Rate of return for the market portfolio is 9%
Return for 1 year Treasury bond is 0.5% per annum
No dividends are paid.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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