Tax 29%

Equity Risk 6.00%

Current Yield 8.02%

Percentage Percentage Market Before-tax After-tax

debt equity debt/equity cost debt cost debt
wd (1) we (2) D/S (3) rd (4) (1 – t)rd (5)
0% 100% 0% 10.20% 7.24%
5% 95% 5% 10.20% 7.24%
10% 90% 11% 10.20% 7.24%
15% 85% 18% 10.20% 7.24%
20% 80% 25% 10.20% 7.24%
25% 75% 33% 10.20% 7.24%
30% 70% 43% 10.20% 7.24%
35% 65% 54% 10.20% 7.24%
40% 60% 67% 10.20% 7.24%
45% 55% 82% 10.20% 7.24%
50% 50% 100% 10.20% 7.24%
55% 45% 122% 10.20% 7.24%
60% 40% 150% 10.20% 7.24%
65% 35% 186% 10.20% 7.24%
70% 30% 233% 10.20% 7.24%
75% 25% 300% 10.20% 7.24%
80% 20% 400% 10.20% 7.24%
85% 15% 567% 10.20% 7.24%
90% 10% 900% 10.20% 7.24%
95% 5% 1900% 10.20% 7.24%
100% 0% 0% 10.20% 7.24%
 Cost of Weighted
Estimated equity cost of cap. Value of firm
beta ß (6) rs (7) WACC (8) V (R mil.) (9)
0.7939 12.78% 12.78% 3,356.00
0.8236 12.96% 12.68% 3,385.00
0.8565 13.16% 12.57% 3,414.00
0.8934 13.38% 12.46% 3,443.00
0.9348 13.63% 12.35% 3,472.00
0.9818 13.91% 12.24% 3,501.00
1.0355 14.23% 12.14% 3,530.00
1.0974 14.60% 12.03% 3,559.00
1.1697 15.04% 11.92% 3,588.00
1.2551 15.55% 11.81% 3,617.00
1.3576 16.17% 11.70% 3,646.00
1.4828 16.92% 11.60% 3,675.00
1.6394 17.86% 11.49% 3,704.00
1.8407 19.06% 11.38% 3,733.00
2.1091 20.67% 11.27% 3,762.00
2.4849 22.93% 11.16% 3,791.00
3.0486 26.31% 11.06% 3,820.00
3.9880 31.95% 10.95% 3,849.00
5.8669 43.22% 10.84% 3,878.00
11.5036 77.04% 10.73% 3,907.00
0.7939 12.78% 7.24% 3,936.00