A company is planning to carry out an expansion project that is…A company is planning to carry out an expansion project that is estimated to cost IDR 15 billion. To fund the project, the company plans to use its debt capacity of 40% of the total investment for the project. It is known that the interest rate on the bonds to be issued is 10%. It is also known that the company’s beta coefficient is 1.2 and the market risk premium is 6%. If, for example, it is known that the risk-free interest rate is 7% and the corporate tax is 25%, calculate the cost of capital that must be borne by the company to carry out the expansion project.AccountingBusinessFinancial AccountingACCOUNTING ECAS801402
solved : A company is planning to carry out an expansion project that
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