Waec Model Questions Vol1 2021 Commerce Question 11
Practice objective / multiple choice question 11 from the 2021 Waec Model Questions Vol1 Commerce examination.
A small business needs to raise ₦500,000. It can obtain a bank loan at 12% per annum, repayable over 5 years with equal annual installments, and it can also raise capital by issuing shares with a nominal value of ₦50 each, paying an annual dividend of 8% of the share capital. The business wants the total annual cash outflow (loan instalment plus dividend) not to exceed ₦80,000. Determine the maximum amount that can be borrowed and the minimum number of shares that must be issued to meet the funding requirement.
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About This Question
This is Waec Model Questions Vol1 2021 Commerce Question 11. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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