Waec Model Questions Vol1 2025 Commerce Question 20
Practice objective / multiple choice question 20 from the 2025 Waec Model Questions Vol1 Commerce examination.
A small manufacturing firm needs ₦12,000,000 for expansion. It can raise the amount either by a bank loan at 12% simple interest per annum or by issuing 10,000 new ordinary shares with a nominal value of ₦1,000 each, selling each at ₦1,200 and paying an annual dividend of 8% on the nominal value. Which source of finance should the firm choose if it wants the lower annual cost, and what is that annual cost (in naira)?
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About This Question
This is Waec Model Questions Vol1 2025 Commerce Question 20. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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