Kazakhstan Auditor Attestation

Practice session

A joint-stock company in Kazakhstan has a capital structure consisting of 70% equity and 30% debt (by market value). The cost of equity is estimated at 18%, and the pre-tax cost of bank debt is 15%. Under the Kazakhstan Tax Code, interest expense is deductible for corporate income tax (CIT) purposes, and the applicable CIT rate is 20%. What is the company's Weighted Average Cost of Capital (WACC)?

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