[md arif]

@acca145 said:
Bank loan was 8.5% or may be 8%
So I took after tax cost of debt
=8.5% x.8
=6.8% or 6.4% if 8% . For me something like that,
MV for equity = $125.6 mill
MV for loan notes = forgot lol
MV for bank loan = forgot this one too
Cost of equity = 12%
WACC = 11.68% though

Cost of equity = 12% same as mine forgot the cost of debt
but as i know we dont include bank overdraft in the calculation of WACC coz its not long term debt but may be im wrong

[md arif]

mine to 11.68% for 31
and 32 was like 64m or 67m …check my variable cost thought upside….tnx

[md arif]

i had 11.something%

[md arif]

interest rate was 8%

[md arif]

Question 31: are we supposed to include the cost of bank overdraft in the WACC calculation??????????

Question 32: what should be done with variable cost inflation which was $52 every year? Are we suppose to do variable cost as 52*1.03 in year, 1 52*1.03*1.03 in year 2, 1 52*1.03*1.03*1.03 in year 3 & 52*1.03*1.03*1.03*1.03 in year 4? or something else????????

[md arif]

nope

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