A dividend of 16 pence per share has just been paid the


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.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A dividend of 16 pence per share has just been paid the
Reference No:- TGS02849274

Expected delivery within 24 Hours