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Can anyone show me how the workings for this calculation?
The question is getting the ungeared cost of equity (keg)
Gearing 50%
Kd 5%
Tax 30%
WACC 11%I got the workings is as follows
11% = (Kegx0.5 + 0.05x(1-0.3)x0.5) /(0.5+0.5)So what is the answer for Keg?
Can anyone help? Big thanks in advance
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