perties Berhad uses the following four sources of capital in their company's operations; No Sources of Capital Amount Cost model 1 Ordinary stock RM300 Million 10.0% 2 Priority share RM200 Million 14.0% 3 Bond RM400 Million 7.0% (before tax) 4 Retained earnings RM100 Million 8.0%

perties Berhad uses the following four sources of capital in their company's operations; No Sources of Capital Amount Cost model 1 Ordinary stock RM300 Million 10.0% 2 Priority share RM200 Million 14.0% 3 Bond RM400 Million 7.0% (before tax) 4 Retained earnings RM100 Million 8.0%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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Question

100%

Prime Properties Berhad uses the following four sources of capital in their company's operations;

No	Sources of Capital	Amount	Cost model
1	Ordinary stock	RM300 Million	10.0%
2	Priority share	RM200 Million	14.0%
3	Bond	RM400 Million	7.0% (before tax)
4	Retained earnings	RM100 Million	8.0%

If a corporate tax rate of 28 per cent per annum is imposed on this company, what is the weighted average cost of capital (WACC) for the company?

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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