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Calculate the weighted average cost of capital for environ

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Reference no: EM132948832

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).

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

Reference no: EM132948832

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