Wacc ???
This query is : Resolved
10 January 2012
Capital structure of AB Ltd is
Debt 60%
Equity 40%
Interest rate on debt is 6.5% and risk free return (Rf ) 5% and risk premium is 6% and bita of firm is 1.2 and tax rate is 40 %
Then Weighted Average cost of capital is(WACC) ?
Debt 60%
Equity 40%
Interest rate on debt is 6.5% and risk free return (Rf ) 5% and risk premium is 6% and bita of firm is 1.2 and tax rate is 40 %
Then Weighted Average cost of capital is(WACC) ?
10 January 2012
1.Ke=5+1.2*6= 12.2%(CAPM model)
2.Kd=6.5%(1-0.40)=3.9%
3.WACC=Wd*Kd+We*Ke
WACC=0.60*3.90+0.40*12.2= 7.22%
WACC= 7.22% answer
2.Kd=6.5%(1-0.40)=3.9%
3.WACC=Wd*Kd+We*Ke
WACC=0.60*3.90+0.40*12.2= 7.22%
WACC= 7.22% answer
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Bank Accounts in Balance Sheet for ITR 3
- Reporting of STCG on Property in ITR
- Annual return of gst limit
- Capital gain of property recd from partnership firm
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
