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Ling Hock Hin Daniel
Answers (1)
a) AT cost of debt = 0.09(1-0.4) = 5.4% D1 = 0.55 * 7.8 = 4.29 3.9(1+g)^9 = 7.8 g = 0.08 Cost of common equity = 4.29/65 + 0.08 = 14.6% b) WACC = (104/260)(0.054) + (156/260)(0.146) = 10.92%
