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Exam F3 All Questions
Exam F3 All Questions

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CIMA Strategic F3 Question # 72 Topic 8 Discussion

F3 Exam Topic 8 Question 72 Discussion:
Question #: 72
Topic #: 8

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

F3 Question 72

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%


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