TQ has five million shares in issue. The cost of equity has been estimated to be 12%.

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TQ has five million shares in issue. The cost of equity has been estimated to be 12%. The current market value of each share is $4.50. TQ also has redeemable bonds in issue. The nominal value of the bonds is $10m. The bonds are trading at a premium of 5% to the nominal value. The post-tax cost of the redeemable bonds is 8%. What is the WACC of TQ? Solution A.10.77%. B.10.73%. C.9.85%. D.9.33%

Posted Date: May 18, 2024 07:09 PM

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TQ has five million shares in issue. The cost of equity has been estimated to be 12%.

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