Amount ($million) |
Weight |
Cost of capital |
||
Debt |
US$ 26,162 |
0.00% |
||
Equity |
US$ 1,500 |
84.40% |
||
Preferred stock |
US$ 4,059 |
14.63% |
||
Total |
||||
WACC |
||||
Calculation of WACC: | ||||
Value | Weights(a) | Return(b) | (a*b) | |
Debt | 26162 | 0.82 | 0 | 0.00 |
Equity | 1500 | 0.05 | 84.4 | 3.99 |
Preferred stock | 4059 | 0.13 | 14.63 | 1.87 |
31721 | 1 | 5.86 | ||
WACC is 5.86% | ||||
Calculation of weight: | ||||
Debt= 26162/31721=0.82 | ||||
Equity=1500/31721= 0.05 | ||||
Preferred stock=4059/31721=0.13 |
Amount ($million) Weight Cost of capital Debt US$ 26,162 0.00% Equity US$ 1,500 84.40% Preferred stock...
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