Q3. There are 2.9 million shares in the company on the French market, costing EUR 4.3 (per share). Getrich's debt amount
Posted: Wed May 18, 2022 10:36 pm
Q3.
There are 2.9 million shares in the company on the French
market, costing EUR 4.3 (per share). Getrich's debt amounts to EUR
77.0 million. The cost of debt is 5.5%. Getrich is taxed at a rate
of 35.2%.
If the cost of equity is 15.0%, what is Getrich's weighted
average cost of capital?
Put the answer in decimal format with one digit after the
decimal point. For example, 0.9 for 99%.
There are 2.9 million shares in the company on the French
market, costing EUR 4.3 (per share). Getrich's debt amounts to EUR
77.0 million. The cost of debt is 5.5%. Getrich is taxed at a rate
of 35.2%.
If the cost of equity is 15.0%, what is Getrich's weighted
average cost of capital?
Put the answer in decimal format with one digit after the
decimal point. For example, 0.9 for 99%.