Page 1 of 1
Equity and debt are valued at Php15 million and Php5 million, respectively. Determine the company's cost of capital base
Posted: Wed Jul 06, 2022 6:27 pm
by answerhappygod
- Equity And Debt Are Valued At Php15 Million And Php5 Million Respectively Determine The Company S Cost Of Capital Base 1 (42.4 KiB) Viewed 16 times
Equity and debt are valued at Php15 million and Php5 million, respectively. Determine the
company's cost of capital based on the
company's required rate of return on equity of 20 percent and the
company's required return on debt of 8 percent. (Assume no taxes.) 14% 17% 20% 11%
Question 14 Given the capital structure to be P10 million long-term debt with an after-tax cost of 10%, and common stock amounting to P10 million with a cost of 12%, compute for the weighted average cost of capital. 11% 22% 12% 1 pts 10%