Question: Example 8: An entity has the following information in its statement of financial position. GH'000 Ordinary shares of 50Gp 2,500 12% unsecured bonds (issued @par)

Example 8: An entity has the following information in its statement of financial position. GH'000 Ordinary shares of 50Gp 2,500 12% unsecured bonds (issued @par) 1,000 Recorded Dividend 0.60. The ordinary shares are currently quoted at 130Gp each and the bonds are trading at GH72 per GH100 nominal. The ordinary dividend of 15Gp has just been paid with an expected growth rate of 10%. Corporation tax is currently 30%. (a)Cal the WACC for this entity. (b)Cal alternative WACC for entity clue: use bool value)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
