FIN3701 ASSIGNMENT 2 SEMESTER 1
FIN3701 ASSIGNMENT 2 SEMESTER 1. Capital Structure: Debt 40% Equity 60% Tax rate 30% Additional funds tax rate 10% Debt: 150 000 through a 10 yr debenture with coupon payments of 8% and a par value of R1000 Equity: 375 000 through retained earnings Calculating break points BPd = AFd Wd BPd = 150 000 0.4 BPd = 375 000 BPe = 375 000 0.6 BPe = 625 000 375 000 Is the BP before we need to utilize a bank loan/debt 625 000 is the BP before we need to issue new ordinary shares Cost of capital for each source Debenture
Geschreven voor
- Instelling
- University of South Africa
- Vak
- FIN3701 - Financial Management (FIN3701)
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- 10 april 2022
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- 6
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- 2021/2022
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fin3701
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financial management
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fin3701 financial management
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fin3701 assignment 2 semester 1