Calculate cost of debt

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Reference no: EM133073719

Following information is available about Riana company:

Cost of debt

 

After-tax cost of debt

4.90%

Cost of equity

 

Treasury bond rate (risk free rate)

4%

Beta

0.62

Risk premium

8%

 

2014

2015

2016

2017

Capital structure

% net debt

25.0%

25.5%

26.0%

26.5%

% equity

75.0%

74.5%

74.0%

73.5%

Required

1. Calculate cost of debt (before tax) each of the year from 2014 to 2017 

2. Calculate cost of Equity each of the year from 2014 to 2017 

3. WACC (Weighted average cost of capital

Reference no: EM133073719

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