WACC and EVA – Q1,june 2012

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    elgcipata
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    How was the Weighted Average Cost of Capital calculated in the june 2012 exam that was used in computation of EVA?


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    gromit
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    See additional note 2:

    2. John has estimated the overall cost of capital to be 12·5%.


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    elgcipata
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    Thank you gromit, i was getting confused with the 8.4% interest charge on the bank loan taking it as the cost of debt.

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