Question: Required: Use the attached figures to: 2 . 1 . Calculate the weighted average cost of capital, using the Gordon Growth Model to calculate the

Required: Use the attached figures to:

2.1 .

Calculate the weighted average cost of capital, using the Gordon Growth Model to calculate the cost of equity.

2.2 .

Calculate the adjusted weighted average cost of capital, using the Capital Asset Pricing Model as the cost of equity. The directors of Pav Limited have appointed you as their financial consultant. They are considering new investment projects and need you to calculate the cost of capital for the company.

Required: Use the attached figures to: 2 . 1 .

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