Cost of Capital Part 1

[@ibrahimsaheed3507]

5 Years ago, and this video is still very useful. Kudos

[@emilymokgadi6809]

Thank you Sir. Very informative

[@decidemukumba2900]

A very good presentation

[@mercysunday5870]

Assuming a firm is expecting a Perpetual Net operating interest of # 1,500 on asset of #15000 which are 100% Equity Financed and the firm Cost of Equity is 10%. The Firm is considering the substitution of Equity by debentures of #3000 at 6% interest rate with an increase in equity of 10.56%. The Firm is also considering the alternative on raising perpetual debentures of #6,000 to replace equity and The shareholders will charge 7% and the cost of debts such equity 12.5%.
Required: 1. What will l be the cost of The equity and cost of debt at higher level of debts and of bower level.
2. What will be the value of the firm
3. What will be the WAAC - Weighted Average Cost Of Capital.
4. Write on the irrelevant structure of the cost of capital by the Net Income Approach and the Modigliani & Miller hypothesis with examples and also state the criticisim

[@ntcuong01ct1]

I have a question:
cost of capital = net revenue * WACC, right?.

[@SandraBusolo-zf4zb]

Enjoyable

[@SandraBusolo-zf4zb]

Thanks

[@fatimakassama3223]

Sir how do you have 12.26%

[@kudzaincube1022]

I encountered the same issue

[@siphokhumalo5118]

I'm also struggling on how to arrive there🤔

[@acw1296]

Thats the IRR

[@noeldjondang1234]

How does he get 12,26%?

[@shamskala9333]

@@noeldjondang1234 the PV have to be negative...