Question

财务管理计算题求助解答

Dorset Ltd wishes to calculate its weighted average cost of capital for use in investment appraisal. The company is financed by 150 million $1 ordinary shares, which have a current market value of $2, and $100 million 12 per cent irredeemable debentures, which are currently quoted at $150 per $100 nominal value. The cost of ordinary share capital is 11 per cent and the rate of corporation tax is 25 per cent.

What is the weighted average cost of capital for Dorset Ltd? (To one decimal place)

Answer 1

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