Risk Adjusted Cost of Capital QUESTIONS: WACC - WEIGHTED AVERAGE COST OF CAPITAL (ICAN SFM)

[@bitiousad]

For those asking how she got Rfr of 5%. If you study bond Valuation, you'd know that redemption yield also means debt, and if you study yield curve it is the addition of risk free and credit rating.Therefore, in that redemption yield also includes the risk free so using market return to detect that was easy.

[@mercysholaja2331]

Welldone sis 👍 God bless you real good

[@odeyemiadetolahelenadetola8339]

Please don't go again seeing all your videos disappear gave me heart burn and got me crying 😭😭😭😭😭

[@rosemaryinok4165]

See ehn, I was wondering why I didn't download them since 😭😭😭

[@odeyemiadetolahelenadetola8339]

@@rosemaryinok4165 sorry sis

[@adebisiolabanji9043]

Thank you for this. Please why did we assume a Risk free rate to be 5%? or is it a general rule

[@deanduzie]

I think She assumed 5% because the question was kinda not complete. In a complete question where the Risk Free Rate % is not given, There will be information about cost of government bond or treasury bills. They are equivalents to risk free debts so that's the rate you will use.

[@onyinyechierem8472]

Hi Tolu, please for the first question, how did you get your Rfr to be 5%?

[@victor4christ268]

It was assumed

[@solomonolanrewaju597]

Hi tolu, the Rfr of 5%, how did you get it

[@Yuuki3uwu]

16.3, beta = 1.4,

[@ramadah7591]

I like you

[@LifewithDeenessa]

For the second question, isnt BD meant to be 1(as seen in the equity to debt ratio)?

[@iyenblessing4400]

Good day, please how did u get Rf of 5% (Bamigberu co in d first question)