FINC610 Week 3 Capital Structure and Debt
Research the top listing and continuation requirements mandated by the NYSE.
Then, complete the following, and submit your individual assignment:
Currently, GII’s capital structure is 75% equity based and 25% debt based. GII is in the 25% marginal tax bracket in France and has a cost of equity of 18% and an average debt cost of 7%. Calculate GII’s weighted average cost of capital (WACC).
What is the main advantage of the divisional cost of capital approach over the WACC approach?
Research the top listing and continuation requirements mandated by the NYSE. What is the main advantage of the divisional cost of capital approach over the WACC approach?
