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Tax rate is not given so assumed to be 0%
| Calculation of WACC (Market Value) | ||||
| Sources | Market value | Weights | Specific cost | Weighted cost |
| Equity | 15,000,000.00 | 69.44% | 17% | 11.81% |
| Loan | 4,632,000.00 | 21.44% | 10% | 2.14% |
| Debenture | 1,968,000.00 | 9.11% | 13% | 1.18% |
| Total | 21,600,000.00 | 100.00% | 15.13% | |
| Calculation of WACC (Book Value) | ||||
| Sources | Bookt value | Weights | Specific cost | Weighted cost |
| Equity | 12,000,000.00 | 61.96% | 17% | 10.53% |
| Loan | 5,400,000.00 | 27.88% | 12% | 3.35% |
| Debenture | 1,968,000.00 | 10.16% | 13% | 1.32% |
| Total | 19,368,000.00 | 100.00% | 15.20% |
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The following information of Buildsworth (Pty) Ltd is presented to you. Market value of equity Share...
Problem 13-5 Calculating WACC (LO1) The total book value of WTC's equity is $8 million, and...
Problem 13-5 Calculating WACC (LO1) The total book value of WTC's equity is $8 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 13%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm's tax rate is 21%. What is the company's WACC? (Do not...
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Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Us...
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The total book value of WTC's equity is $13 million, and book value per share is...
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compute the fair value of shares.? On 31st March, 2019 the Balance Sheet of Laxmi Ltd....
compute the fair value of shares.?
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Question 2 Walton (Pty) Ltd presents you with the following list of balances from their books...
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The total book value of WTC’s equity is $12 million, and book value per share is $20. The stock has a market-to-book rat...
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The total book value of WTC's equity is $12 million, and book value per share is...
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Problem 13-5 Calculating WACC (LO1) The total book value of WTC's equity is $8 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 13%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm's tax rate is 21%. What is the company's WACC? (Do not...
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compute the fair value of shares.?
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