Gce Model Questions Vol1 2018 Commerce Question 48
Practice objective / multiple choice question 48 from the 2018 Gce Model Questions Vol1 Commerce examination.
A company needs to raise \(10\) million naira of capital. It can obtain a bank loan at 12 % interest per annum, with a corporate tax rate of 20 %, and it can issue 5 % preference shares (no tax shield). The target capital structure is 60 % debt and 40 % equity. Calculate the weighted average cost of capital (WACC) for the company, expressing your answer as a percentage to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2018 Commerce Question 48. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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