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atloh provided below to calculate the weighted average cost of capital of PWV Touch hem Limited. te INFORMATION The optimal capital share for PWV Limited is 40% debt, 10% preference share and 50% ordinary share financing. The pre-tax costs of capital for debt, preference shares and ordinary shares are 20%, 12.5% and 18.5% respectively The tax rate is 30%

atloh provided below to calculate the weighted average cost of capital of PWV Touch hem Limited. te INFORMATION The optimal capital share for PWV Limited is 40% debt, 10% preference share and 50% ordinary share financing. The pre-tax costs of capital for debt, preference shares and ordinary shares are 20%, 12.5% and 18.5% respectively The tax rate is 30%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 5.2

Use the information provided to calculate the weighted average cost of capital of PWV 

5.2 Use the information provided below to calculate the weighted average cost of capital of PWV Touch here t Limited. text INFORMATION The optimal capital share for PWW Limited is 40% debt, 10% preference share and 50% ordinary share financing. The pre-tax costs of capital for debt, preference shares and ordinary shares are 20%, 12.5% and 18.5% respectively. The tax rate is 30%.
Transcribed Image Text:5.2 Use the information provided below to calculate the weighted average cost of capital of PWV Touch here t Limited. text INFORMATION The optimal capital share for PWW Limited is 40% debt, 10% preference share and 50% ordinary share financing. The pre-tax costs of capital for debt, preference shares and ordinary shares are 20%, 12.5% and 18.5% respectively. The tax rate is 30%.
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