yes i felt good..but i do have a nagging question ….
there was a written question in which WACC HAD TO BE CALCULATED.
now, i dont remember exactly but we were given market values of various finances.. share prices, market values of pref shares and bonds and a bank loan.
i dont remember.. but am sure that a tax rate was not given.
so i computed the cost of each source without the tax. and the only thing nagging me is that the bank loan was at 7%, which was higher than bonds/pref shares .. and whereas it shd have been the lowest.
That seems unusual (but not impossible). However without being able to see the question I can’t really say anything.
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