The cost of the share capital of a certain company amounts is calculated based on CAPM (risk free rate 5%, market premium 7%, beta 1,3), the nominal cost of a long-term credit amounts to 9%,the nominal cost of capital raised from the issue of bonds amounts to 11%. Interest on the bonds is paid twice a year, the credit is repaid two times a year. We also know that the market value of the share capital equals 1000 mu, the nominal value of shares amounts to 800, the nominal value of the long-term credit:  500, the nominal value of the issued bonds: 300. On the basis of the available  data and the information that the tax rate amounts to 19%, estimate the value of WACC.

Answer rating: 100% (QA)

The WACC Weighted Average Cost of Capital is the average cost of all the capital that a company has ... View the full answer