Beta Company Finance
October 30th, 2007 | 
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Question: Help with my acca homework please?
Hello guys, could anyone help me with my homework pleasssse?
I need to calculate the weighted average cost of capital.
Equity:
Ordinary share capital (£1) £10,000
Retained profit and reserves £2,000
NON-CURRENT LIABILITIES:
12% secured bonds £12,000
current liabilities £4,000
ADDITIONAL INFORMATION:
The market rice per share is 150 pence per share and £102 market value for every 100 nominal value for the bond.
The corporation tax is 30%.
This returns on the market is estimated to be 12% but risk-free rate is 5%. The equity beta is 1.3...
(a)Calculate the weighted average cost of capital and explain its usufulness.
(b) Explain six main sources of finance to a medium-sized company,their merits and demerits.
I would really appreciate your help!!!:)
Answer: You may get more skilled answers in the Accounting or Finance section.
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