| Cost of Debt | |||
| PVIF | 6 | ||
| Interest rate | x in PVIF formula | ||
| 1-1/1+x^10)/x | |||
| The x in PVIF formula is | 6.014772740431685 | 10.50% | |
| Cost of Equity | |||
| 3+1.39(12-3) | 15.5% | ||
| WACC to be used as required rate of return | |||
| Debt | 600000 | 10.50% | 6.014772740431685 |
| Equitgy | 1400000 | 15.5% | 0.1551 |
| 2000000 | 26.0% | ||