12. To buy the electronic equipment and install the jammers, you can either use money in your metals exchange investment account, which generally makes you 10% or you can choose to split it among the options below. Which is best (split it or metals investment? $3M in stock sales at 15% per year $4M in loans at 9% $6M in retained earnings at 7% 13. You choose that because the weighted average cost of capital for the split is [units %]

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter3: The Financial Environment: Markets, Institutions And Investment Banking
Section: Chapter Questions
Problem 18PROB
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12. To buy the electronic equipment and install the
jammers, you can either use money in your metals
exchange investment account, which generally
makes you 10% or you can choose to split it among
the options below. Which is best (split it or metals
investment?
$3M in stock sales at 15% per year
$4M in loans at 9%
$6M in retained earnings at 7%
13. You choose that because the weighted average
cost of capital for the split is
[units %]
Transcribed Image Text:12. To buy the electronic equipment and install the jammers, you can either use money in your metals exchange investment account, which generally makes you 10% or you can choose to split it among the options below. Which is best (split it or metals investment? $3M in stock sales at 15% per year $4M in loans at 9% $6M in retained earnings at 7% 13. You choose that because the weighted average cost of capital for the split is [units %]
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