Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Consider the following information about a company:
- Market value of debt outstanding: £15,000
- Market value of company: £40,000
- Cost of debt: 4.0%
- Unlevered WACC: 9.0%
- Tax rate: 25%
Based on the Modigliani-Miller propositions, the company's cost of equity is closest to:
Consider the following information about a company:
- Market value of debt outstanding: £15,000
- Market value of company: £40,000
- Cost of debt: 4.0%
- Unlevered WACC: 9.0%
- Tax rate: 25%
Based on the Modigliani-Miller propositions, the company's cost of equity is closest to:
Exam-Like
Comments
Loading comments...