INFORMATION The optimal capital share of Yoko Limited is 60% ordinary share, 30% preference share and 10% debt financing. The pre-tax costs of capital for ordinary shares, preference shares and debt are 19%, 16% and 20% respectively. The tax rate is 27%.
INFORMATION The optimal capital share of Yoko Limited is 60% ordinary share, 30% preference share and 10% debt financing. The pre-tax costs of capital for ordinary shares, preference shares and debt are 19%, 16% and 20% respectively. The tax rate is 27%.
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 11EP
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