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Cost of Equity

Forums › ACCA Forums › ACCA FM Financial Management Forums › Cost of Equity

  • This topic has 0 replies, 1 voice, and was last updated 5 years ago by gershal.
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  • December 24, 2019 at 4:30 am #556360
    gershal
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    • Topics: 4
    • Replies: 11
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    Hi,
    Please need pointers in solving this. Thanks
    Integrated Services has an EBIT of $5,000,000 and belongs to a risk class of 10%. What is the cost of Equity if it employs 6% debt to the extent of 30%, 40% or 50% of the total capital fund of $20,000,000?

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