Gce Model Questions Vol1 2022 Commerce Question 25
Practice objective / multiple choice question 25 from the 2022 Gce Model Questions Vol1 Commerce examination.
A small business finances its operations through three sources: 40\% equity at a cost of 12\% per annum, 35\% bank loan at an interest rate of 9\% per annum (interest is tax‑deductible, corporate tax rate 30\%), and 25\% overdraft facility at an interest rate of 15\% per annum (interest is not tax‑deductible). Calculate the weighted average cost of capital (WACC) for the business, expressed as a percentage to two decimal places.
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This is Gce Model Questions Vol1 2022 Commerce Question 25. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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