Calculate the weighted average cost of capital

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Question - Value Cost of Funds - Environ4Us Ltd has the following capital structure.

Debt 120,000,000 3.5%

Equity 180,000,000 11.0%

Environ4Us Ltd is planning to restructure. This will involve buying back $100,000,000 worth of shares and selling $100,000,000 worth of bonds (debt).

Calculate the weighted average cost of capital for Environ4Us Ltd after the firm has changed their capital structure.

Reference no: EM133028718

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