CIMA Financial Strategy F3 Question # 11 Topic 2 Discussion

CIMA Financial Strategy F3 Question # 11 Topic 2 Discussion

F3 Exam Topic 2 Question 11 Discussion:
Question #: 11
Topic #: 2

TTT pic is a listed company. The following information is relevant:

F3 Question 11

TTT pic's board is considering issuing new 6% irredeemable debt to re-purchase equity. This is expected to change TTT pic's debt to equity mix to 40: 60 by market value. The corporate tax rate is 20%.

What will be TTT pic's WACC following this change in capital structure?


A.

11.66%


B.

12.67%


C.

13.43%


D.

11.09%


Get Premium F3 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.