The company is in search of resources for a new investment of TL 3,000,000. As a financial manager, a) Find the current weighted average cost of capital according to the resource distribution below

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The company is in search of resources for a new investment of TL 3,000,000. As a financial manager,

a) Find the current weighted average cost of capital according to the resource distribution below.

After Tax
Resource
Cost
Amount
Bank loan
1.750.000
%22
Bond
1.250.000
%20
Undistributed Profit
750.000
%27
Stocks
4.000.000
%30
Total Resources
7.750.000
Transcribed Image Text:After Tax Resource Cost Amount Bank loan 1.750.000 %22 Bond 1.250.000 %20 Undistributed Profit 750.000 %27 Stocks 4.000.000 %30 Total Resources 7.750.000
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