From the period from January 1, 2015 to December 31, 2015, the Ponderosa company had preferred shares for $20,000,000 with a cost of 16% and common shares for $28,500,000 with a cost of 25%. additional account with long-term obligations for $9,500,000 and long-term bank loans for $3,500,000 with a cost of 6% and 12% respectively. Calculate the weighted average cost

Sep 8, 2023

From the period from January 1, 2015 to December 31, 2015, the Ponderosa company had preferred shares for $20,000,000 with a cost of 16% and common shares for $28,500,000 with a cost of 25%. additional account with long-term obligations for $9,500,000 and long-term bank loans for $3,500,000 with a cost of 6% and 12% respectively. Calculate the weighted average cost of capital (note that all data is before taxes which is 30%).

Additional comments: The financial aspect is key, because as is known, ideas can hardly be carried out without money, no matter how good they are. That is why it is very important to know what the WACC (Weighted Average Cost of Capital) is. The Weighted Average Cost of Capital is a financial tool that allows calculating and consolidating, in a percentage figure, the cost of financing to carry out a project, regardless of whether this financing is internal or external, debt or capital.

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From the period from January 1, 2015 to December 31, 2015, the Ponderosa company had preferred shares for $20,000,000 with a cost of 16% and common shares for $28,500,000 with a cost of 25%. additional account with long-term obligations for $9,500,000 and long-term bank loans for $3,500,000 with a cost of 6% and 12% respectively. Calculate the weighted average cost
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