Admin nhận support thi đồng giá 150k/60 phút, nhận làm report, assignment đồng thời có bán
các loại tài khoản premium : adobe full app, grammarly,
quillbot...Inbox discord Asskicker nhé.
1st step
All steps
Answer only
Step 1
The answer provided below has been developed in a clear step by step manner.
Step:1
a) Steps for calculation:
Cost of equity =(WACC-(B/V)*rd*(1-T))/(S/V)
= 9 % − ( 2.3 3.3 ) × 5.3 % × ( 1 − 24 % ) 1 3.3
=0.2044
Explanation:
Please refer to solution in this step
Step 2
Step:2
Steps for calculation: b)
(Ru+Rd*
Univered cost (20.44%+5.3%*2.3*
(D/E)*(1-
b) of equity (1-24%))/(1- 10.81%
T))/(1-Rd*
Capital 2.3*(1-2%))0
(D/E)*(1-T)
10.81%+0.75*
Cost of equity Ru+(D/E)* (10.81%-
c) 13.95%
at D/E=0.75 (Ru-Rd)*(1-T) 5.3%)*(1-
24%)8)
10.81%+1.3*
Cost of equity Ru+(D/E)* (10.81%-
16.25%
at D/E=1.3 (Ru-Rd)*(1-T) 5.3%)*(1-
24%)
WACC debt (0.75/1.75)*5.3%*
Wd*Rd*(1-
equity (1-24%)+ 9.70%
T)+We*Ke
ratio=0.75 (1/1.75)*13.95%
WACC if debt (1.3/2.3)*5.3%*
Wd*Rd*(1-
equity ratio= (1-24%)+ 9.34%
T)+We*Ke
1.3 (1/2.3)*16.25%
Explanation:
Plese refer to the solution in this step
Answer
ANSWER:
Hence,
a)cost of equity 20.4%
b)Unlevered cost of equity capital 10.81%
c)WACC if debt-equity ratio 0.75 is 9.70%
WACC if debt-equity ratio 1.3 is 9.34%
Was this solution helpful?
