A company's cost of capital, assuming the company has no debt, is the market price per...
A company's cost of capital, assuming the company has no debt, is the market price per share of the company's stock. True or False? Explain.
Homework Answers
False, the
WACC is calculated as :
Weight of debt * after tax cost of debt + weight of equity * cost of equity + weight of preference * cost of preference
In case of zero debt.
The cost of capital would be the weighted average of equity and preference capital.
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A company's cost of capital, assuming the company has no debt,
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sorry accidently posted 2 photos. A company's weighted average cost of capital is 9.6% per year...
sorry accidently posted 2 photos.
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sorry accidently posted 2 photos.
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