1. 

   VSA_88 Active Member

   Hi,
   Can somebody please explain why the answer to this is D?
   I understand WACC and how to calculate the net cost of debt, but struggling to apply the concept here. I was hoping to see something like 8% subject to a tax adjustment, (not more or less).
   Thanks

    

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   VSA_88, Feb 20, 2019

   #1
2. 

   Lynn Birchall ActEd Tutor Staff Member

   Hi
   
   Hopefully this thread will help : https://www.acted.co.uk/forums/index.php?threads/sep-2009-uk-q10.15267/
   
   Best wishes
   Lynn

    

   Lynn Birchall, Feb 20, 2019

   #2

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