Question: please show the working! * i will give a thumb up ASAP (a) You are provided with the following information on Sparkle Ltd: There are

please show the working!
* i will give a thumb up ASAP
please show the working! * i will give a thumb up

(a) You are provided with the following information on Sparkle Ltd: There are 60 million ordinary shares. The shares will pay a dividend of 80 cents at the end of the year. The dividend is expected to grow at 2% p.a. indefinitely. Sparkle's beta is 1.2, the risk-free rate is 4% The return on the market is 12% Sparkle has 1.5 million bonds with a return of 2% above the risk-free rate. The bonds are currently trading at $85. The company tax rate is 30%. a. Calculate Sparkle Ltd's WACC. Show all your workings. (7 marks)

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