The following information relates to the X Division of NUBD Co: Interest rate on debt capital: 8% Cost of equity capital: 12% Market value of debt capital: P70 million Market value of equity capital: P80 million Income tax rate: 30%

The following information relates to the X Division of NUBD Co: Interest rate on debt capital: 8% Cost of equity capital: 12% Market value of debt capital: P70 million Market value of equity capital: P80 million Income tax rate: 30%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EB: Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of...

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Question

On the basis of this information, NUBD's weighted-average cost of capital is: (round-off to 2 decimal places

The following information relates to the X Division of NUBD Co:
Interest rate on debt capital: 8%
Cost of equity capital: 12%
Market value of debt capital: P70 million
Market value of equity capital: P80 million
Income tax rate: 30%

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