Homework Answers
| Calculation of Cost of Debt | |||||
| Cost OF Debt = Interest ( 1 - Tax) | |||||
| = 6 % * ( 1- 0.4) | |||||
| = 6 % * 0.6 | |||||
| 3.60% | |||||
| CALCUALATION OF WACC | |||||
| Particlulars | Weight | Cost | WACC = ( Weight* Cost) | ||
| Equity Stock | 50.00% | 10.00% | 5.00% | ||
| Preference Stock | 10.00% | 8.00% | 0.800% | ||
| Debt | 40.00% | 3.60% | 1.4400% | ||
| Total | 100.00% | 7.24% | |||
| Answer = WACC = 7.24% | |||||
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If you could also upload the excel file or screen shot the excel work that would...
If you could also upload the excel file or screen shot the excel
work that would be helpful to learn how to do the problem myself in
the future ! Thank you !
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If you could also upload the excel file or screen shot the excel
work that would be helpful to learn how to do the problem myself in
the future ! Thank you !
IUITEWUIK. Lilaplel 9 TIUITWUIK udve 8 of 10 (4 complete) HW Score: 20%, 2 of 10 pts Score: 0 of 1 pt 9-12 (book/static) 3 Question Help The effect of tax rate on WACC K. Bell Jewelers wishes to explore the effect on its cost of capital...
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