WACC and EVA – Q1,june 2012

This topic has 2 replies, 2 voices, and was last updated 13 years ago by elgcipata.

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October 27, 2012 at 3:47 pm #54899
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?
October 27, 2012 at 3:57 pm #106100
Ken Garrett
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See additional note 2:

2. John has estimated the overall cost of capital to be 12·5%.
October 27, 2012 at 4:22 pm #106101
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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