Weighted Average Cost of Capital for Beximco LTD
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Name- Md. Mahfuzur Rahman (Shahin) Id-1020611
Weighted average cost of capital For Beximco LTD. WACC: WeCe+WdCd(1-T) We= equity weight Wd= firm loan T= firm tax Cd= loan cost Ce= cost of equity Effective Tax Rate: Total tax/ EBIT Effective tax rate: .17320169+ .18019461+ .1900426+ .16343242+ . 18272135/5 =.18915967 We= equity/ equity + debt We=44,079,962,117/( 44,079,962,117+5,220,136,740) =0.894115 Wd= debt/equity+ debt= 5,220,136,740/ (44,079,962,117+5,220,136,740)= 0.105885 Ce= Rf+ Beta( Rm- Rf) Ce= 8.9%+ 0.831841513 (.216767257-8.9%) Ce= 0.195282 WACC= WeCe+WdCd(1-T) WACC= (0.894115 *0.195282 )+ 0.105885 *.074923523(1-.18915967 ) WACC= 0.181037 or 18.10%
Name- Md. Mahfuzur Rahman (Shahin) Id-1020611
Weighted average cost of capital For Beximco LTD. WACC: WeCe+WdCd(1-T) We= equity weight Wd= firm loan T= firm tax Cd= loan cost Ce= cost of equity Effective Tax Rate: Total tax/ EBIT Effective tax rate: .17320169+ .18019461+ .1900426+ .16343242+ . 18272135/5 =.18915967 We= equity/ equity + debt We=44,079,962,117/( 44,079,962,117+5,220,136,740) =0.894115 Wd= debt/equity+ debt= 5,220,136,740/ (44,079,962,117+5,220,136,740)= 0.105885 Ce= Rf+ Beta( Rm- Rf) Ce= 8.9%+ 0.831841513 (.216767257-8.9%) Ce= 0.195282 WACC= WeCe+WdCd(1-T) WACC= (0.894115 *0.195282 )+ 0.105885 *.074923523(1-.18915967 ) WACC= 0.181037 or 18.10%
Name- Md. Mahfuzur Rahman (Shahin) Id-1020611
