Calculate the pre-tax weighted average cost of capital, Financial Management

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Calculate the pre-tax weighted average cost of capital

Problem

Namibia Post Limited (NamPost) has a market value debt ofN$30 million, market value equity ofN$6 million and cash ofN$5 million. The pre-tax cost of debt is 8%. The cost of equity is 10% and the tax rate is 40%. Calculate the pre-tax Weighted Average Cost of Capital.

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Financial Management: Calculate the pre-tax weighted average cost of capital

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Financial Management: Calculate the pre-tax weighted average cost of capital

Reference No:- TGS03237976

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