please help me
wacc=16% kd is 40%,ke is 60% ,t is 30%
required keu?
formula wacc=keu(keu-kd)(1-t)kd/ke.
answer is 14.1% but i dunt know how to calculate it...
I assume $\displaystyle keu$ is one variable and it is not equal to $\displaystyle ke*u$?
$\displaystyle wacc = keu*\frac{(keu-kd)(1-t)(kd)}{ke}$
Fill in what you know...
$\displaystyle 0.16 = keu*\frac{(keu-0.4)(1-0.3)(0.4)}{0.6}$
$\displaystyle 0.16 = keu*\frac{(keu-0.4)(0.28)}{0.6}$
$\displaystyle \frac{0.16*0.6}{0.28} = keu*(keu-0.4)$
$\displaystyle \frac{0.16*0.6}{0.28} = keu*(keu-0.4)$
$\displaystyle 0.3429 = keu^2 - 0.4keu$
Let $\displaystyle x = keu$
$\displaystyle 0.3429 = x^2 - 0.4x$
$\displaystyle x^2 - 0.4x - 0.3429 = 0$
Can you solve this quadratic for x?