Question: You will be required to search for data as part of the assignment. This will involve collecting financial information from firms (Wesfarmers) beta and the

You will be required to search for data as part of the assignment. This will involve collecting financial information from firms (Wesfarmers) beta and the current risk free rate. Data and information can be accessed websites such as the Reserve Bank of Australia will also provide information.. You must note where you obtained the information from in all cases, and the date of access as part of your referencing. You have to complete the four tasks below and prepare a report. Tasks: 1. Calculate the Weighted Average Cost of Capital using an appropriate technique. a. Include calculation of the Cost of Equity and Cost of Debt. 2. Explain your calculations and the judgements you made in arriving at your answer. 3. Calculate gearing ratios and describe any difficulties encountered in doing so. 4. Analyse your findings with reference to capital structure theory. 5. Provide recommendations to the Board on the firms current capital structure

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!