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FM capital structure illustration 10 cost equity part (sub question 3) can someone pls explain that with solution

Asked by Keerthana4 Mar 2024660 views

1 answer

  1. Sai · 4 Mar 2024

    Kel = Keu + D/E * (Keu-kd) (1-t) 0.20 + 275/1557.5 * (0.20-0.15) * (1-0.30) 0.20 + 0.0088 * 0.7 0.20 + 0.00617 0.20617 or 20.62%

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