Calculate the wacc of company a

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So far in your analysis, you have established that Company A's total enterprise value is R500 million, of which R405 million is the equity value. The average marginal tax rate over the last few years has been 20%. The after-tax cost of debt financing is 8%.

Question 1: Calculate the WACC of Company A, using the information provided and the cost of equity calculated in the previous question.

Show all formulae and steps in your calculations. Round your final answer to two decimal places.

Reference no: EM132636226

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