Gce Model Questions Vol1 2022 Commerce Question 49
Practice objective / multiple choice question 49 from the 2022 Gce Model Questions Vol1 Commerce examination.
A small business needs to raise \(£200\,000\). It can obtain the finance from three sources: equity at a cost of \(12\%\), a bank loan of \(£80\,000\) at an interest rate of \(8\%\) per annum, and a government grant of \(£20\,000\) which carries no cost. The corporate tax rate is \(30\%\). Calculate the weighted average cost of capital (WACC) for this financing mix.
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About This Question
This is Gce Model Questions Vol1 2022 Commerce Question 49. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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