(Answered) Forrest ltd has on its books the following amounts and

Finance

Forrest Ltd has on its books the following amounts and After-tax cost for each source of capital: Source of capital Market value ($) Pre-tax cost (%) Long-term debt 30,000,000 4.5 Preference capital 20,000,000 10.5 Ordinary equity 50,000,000 12.5

Required:

a) Calculate the firm's weighted average cost of capital (WACC) using market value.

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