calculate weighted average cost of capital if: 1) share of debt from total capital is 25% and cost of debt is 8% 2)share of preference shares from total capital is 25% and the cost of preference shares is 10% 3)share of equity shares from total capital is 35% and the cost of equity shares is 15% 4)share of retained earning from total capital is 15% and the cost of retained earning is 6% Select one: a. 10.1% b. 11.1% c. None of them is correct d. 10.7%

calculate weighted average cost of capital if: 1) share of debt from total capital is 25% and cost of debt is 8% 2)share of preference shares from total capital is 25% and the cost of preference shares is 10% 3)share of equity shares from total capital is 35% and the cost of equity shares is 15% 4)share of retained earning from total capital is 15% and the cost of retained earning is 6% Select one: a. 10.1% b. 11.1% c. None of them is correct d. 10.7%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 9PROB

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