Waec Model Questions Vol1 2025 Commerce Question 22
Practice objective / multiple choice question 22 from the 2025 Waec Model Questions Vol1 Commerce examination.
A manufacturing firm needs ₦5,000,000 for new equipment. It plans to raise the funds from three sources: a bank loan (interest 12% p.a.), 10% debentures with a flotation cost of 2% of the amount raised, and retained earnings (cost 8%). The firm will obtain 40% of the total from the bank loan, 35% from debentures and the remainder from retained earnings. What is the overall weighted average cost of finance (WACC) for the project, expressed as a percentage to two decimal places?
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About This Question
This is Waec Model Questions Vol1 2025 Commerce Question 22. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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