The company is paying corporation tax at the rate of 30%. The cost of the company's...

 

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The company is paying corporation tax at the rate of 30%. The cost of the company's ordinary equity capital has been estimated at 18% pa. What is the company's weighted average cost of capital for capital investment appraisal purposes? Sum 20: Ingham plc's capital structure is as follows: $m 50c ordinary shares 12 8% $1 preference shares 6 12.5% loan notes 20X6 8 26 The loan notes are redeemable at nominal value in 20X6. The current market prices of the company's securities are as follows. 50c ordinary shares 250c 8% $1 preference shares 92c 12.5% loan notes 20X6 $100 The company is paying corporation tax at the rate of 30%. The cost of the company's ordinary equity capital has been estimated at 18% pa. What is the company's weighted average cost of capital for capital investment appraisal purposes? Sum 20: Ingham plc's capital structure is as follows: $m 50c ordinary shares 12 8% $1 preference shares 6 12.5% loan notes 20X6 8 26 The loan notes are redeemable at nominal value in 20X6. The current market prices of the company's securities are as follows. 50c ordinary shares 250c 8% $1 preference shares 92c 12.5% loan notes 20X6 $100

Answer rating: 100% (QA)

Here are the steps to calculate Ingham plcs weighted average cost of capital WACC 1 Calculate the ma... View the full answer