Calculate the weighted average cost of capital for alpha plc

Assignment Help Financial Management

Reference no: EM132055811

Weighted Average Cost of Capital

Use the information below to calculate the weighted average cost of capital (WACC) for Bravo plc.

£m

Ordinary shares of £1 each (13 million) 13

8% irredeemable debentures 22

The current share price is 320p and the market value of debentures is £85 (per £100 nominal).

A dividend of 16 pence per share has just been paid. The expected growth rate of dividends is 8%.

Corporation tax rate is 20%.

Calculate the weighted average cost of capital (WACC) for Alpha plc.

Reference no: EM132055811

Questions Cloud

Determine the flows from the two columns : Determine the flows from the two columns and the mol % 'A' in bottom product from column 2.

Sample of gas occupies : What would the resulting volume be if the pressure were increased to 3.9 and temperature did not change?

What is weedors current wealth : What is Weedor's current wealth (equivalently, what is the present value of his assets)? How much money can he spend and consume today?

Calculate the percent of the acid that has undergone : If the freezing point of a 0.105 m CH 3 C OOH is -0.204°C, calculate the percent of the acid that has undergone ionization?

Calculate the weighted average cost of capital for alpha plc : A dividend of 16 pence per share has just been paid. The expected growth rate of dividends is 8%.

Dilution effects would you expect a precipitate to form : Ignoring dilution effects would you expect a precipitate to form? What should Pb 2+ be to just start precipitation?

Standard for the standardization of base solutions : Oxalic acid dihydrate, H2C2O4.2H2O, is often used as a primary standard for the standardization of base solutions.

What is the expected value and standard deviation : What is the expected value and standard deviation of the rate of return on the client's portfolio?

What is the mass percent of nitrogen in the compound : A 0.107-g sample of a compound was treated as above, producing 80.8 mL of N2 saturated with water vapor at 25 °C and 746.9 torr.

User Account

All Pages