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  3. 6 pts below is the balance sheet of frankel ltd, m

6 pts Below is the Balance sheet of Frankel Ltd, manufacturer pf quality saddle for...

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Accounting

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6 pts Below is the Balance sheet of Frankel Ltd, manufacturer pf quality saddle for the equestrian industry Frankel Limited Balance Sheet Current assets 5000 Current liabilities 4000 Net property, plant and equipment 15000 Long-term debt - Bank 5500 Investments and 20000 Preference Shares 10000 other assets Shareholders' equity 20500 Total 40000 Total 40000 Here is some further information: No. of outstanding shares 20000 Price per share (P) $4 Beta 1.25 Risk free rate 3.50% Cost of debt (rD) 4.50% Marginal tax rate 30% Market Return 10.5% No. of Preference shares 100 Preference shares were issued with a face value of $100 and a dividend rate of 10%. They were recently traded at $90. No interests payment payable on current liabilities. a Calculate Frankel's WACC. Use the capital asset pricing model and the additional information given above. Make additional assumptions and approximations as necessary

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