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Cost of debt (multiple choice question Sept 2009, q10)

Discussion in 'CB1' started by VSA_88, Feb 20, 2019.

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  1. VSA_88

    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

    Lynn Birchall ActEd Tutor Staff Member

    Lynn Birchall, Feb 20, 2019
    #2

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