Page 54 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 54 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629The cost of equity is affected across international countries as follows:An international company may open projects in different countries, and each of these projects is affected by the value of the %u00df, which varies from one market to another. International companies can obtain equity from their home country or from other countries, either by issuing shares in international markets or by dual listing the company's shares in more than one international market (GDR). Each type of share has a different cost of equity depending on the market in which it is registered. The difference in the cost of equity across countries affects the ideal financial structure of the company, as the relative weight of equity can vary from one country to another.Example 1:Al Noor International Company is calculating the weighted average cost of capital. The company issued new bonds at a rate of 9%. Furthermore, the company also issued new stocks with a beta coefficient of %u00df = 1.5, the market index return was 10%, and the treasury bill return was 3%. The company's target capital structure is 30 percent debt and 70 percent equity. If Blues is in the 35 percent tax bracket, what is its weighted average cost of capital?Answer:Cost of equity:R = R + %uf062i f i(R %u2013 R )M f= 3% + 1.5 [10% - 3%] = 13.5%weighted average cost of capital (WACC)WACC = weRe + wdRd (1-T)= (70% * 13.50%) + (30% * 9%) * (1 - 35%) = 11.21%