The optimal capital structure of DP Ltd. is as shown below. The company has sh. 300,000 in retained earnings and is considering investing in a project...

      

The optimal capital structure of DP Ltd. is as shown below.
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The company has sh. 300,000 in retained earnings and is considering investing in a project which will cost sh. 1,200,000
Required:
i) The marginal cost of capital (MCC) assuming a 30% tax rate.
ii) Retained earnings break point.

  

Answers


Kavungya
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Kavungya answered the question on April 11, 2022 at 10:28


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