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Determine pun cost of equity

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Reference no: EM132779849

PUN Company's debt amounts to RM10 million and its debt to equity ratio is 1.5. PUN provides the following information: ·

pre-tax cost of debt is 8% ·

weighted average cost of capital (wacc) is 10%

tax rate is 20%

Determine PUN's:

(i) cost of equity, and

(ii) unlevered cost of equity

Reference no: EM132779849

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