::: vuaskari.com ::: FIN622 GDB IDEA SOLUTION BY ASHAR ALI AND RECHEKED TOO

Post: #11 |  RE: FIN622 GDB IDEA SOLUTION SHARED 29/5/2011  WACC if the Debt-equity Ratio of Company is .5 WACC=.11(1/1.5) + .09(.5/1.5)(1-.35) WACC=.11(.666666666) + .09(.333333333)(.65) WACC=.073333333 + .03(.65) WACC=.073333333 + .0195 WACC=.092833333 WACC=9.28% WACC if the Debt-equity Ratio of Company is 1.0 WACC=.11(1/2) + .09(1/2)(1-.35) WACC=.11(.5) + .09(.5) (.65) WACC=.055 + ..045(.65) WACC=.055+.02925 WACC=.08425 WACC=8.42% WACC if the Debt-Equity Ratio of Company is 2.0 WACC=.11(1/3) + .09(2/3)(1-.35) WACC=.11(.333333333) + .09(.666666666)(.65) WACC=.036666666 + .06(.65) WACC=.036666666 + .039 WACC=.075666666 WACC=7.56% Trend of WACC With increasing D/E Ratio Increase in Debt or Debt-equity Ratio decreases the WACC agar thek hai then tell me aur agar wrong hai then also tell me i m waitng ur reply  this soulation is 100% correct i check it my self......

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