GIA Ltd ordinary shares have a total value of 100 million; Their Debt is valued at $80 million and their preference at $20 million. The cost of each component is: before tax cost of debt, 5%; preference shares, 10%; ordinary shares, 12%. Tax rate is 30%. Calculate the WACC for GIA Ltd?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for GIA Ltd we need to take into account the ... View the full answer