The following information relates to the X Division of NUBD Co: Interest rate on debt capital: 9% Cost of equity capital: 12% Market value of debt capital: P70 million Market value of equity capital: P80 million Income tax rate: 30%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On the basis of this information, NUBD's weighted-average cost of capital is: (round-off to 2 decimal places)

The following information relates to the X Division of NUBD Co:
Interest rate on debt capital: 9%
Cost of equity capital: 12%
Market value of debt capital: P70 million
Market value of equity capital: P80 million
Income tax rate: 30%
Transcribed Image Text:The following information relates to the X Division of NUBD Co: Interest rate on debt capital: 9% Cost of equity capital: 12% Market value of debt capital: P70 million Market value of equity capital: P80 million Income tax rate: 30%
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