Grey Company is a retail trade. The company currently has total capital of USD 50,000,000,000.
Current capital structure of the company:
-Debt Mr. A (7.5% interest) total USD 17,500,000,000
-Debt Mr. B (10% interest) total USD 20,000,000,000
-Debt Mr, C (15% interest) total USD 12,500,000,000
A. Based on the data above, calculate the company's
WACC!
B. If the loan interest is 12%, are the funds used as project capital efficient?
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.
Grey Company is a retail trade. The company currently has total capital of USD 50,000,000,000. Current...
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