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structure

10%debt

amount
after tax cost weight
weighted cost
200,000
0.05 0.15936255 0.00796813

16%debt

176500

0.08 0.14063745

0.011251

equity

578500

0.15 0.46095618 0.06914343

retained earning 300000


TOTAL
1255000

0.15 0.23904382 0.03585657


0.11296813

TOTAL

eighted cost

structure amount after tax cost


weight
weighted cost
10%debt
200000
0.05 0.159363 0.007968
16%debt

176500

0.08 0.140637 0.011251

14%preference578500
share capital 0.14 0.460956 0.064534
retained earning
300000
TOTAL
1255000

0.15 0.239044 0.035857


0.11961

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