Neco 2021 Commerce Question 23

Practice objective / multiple choice question 23 from the 2021 Neco Commerce examination.

Neco 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 23 NECO • 2021 • COMMERCE • objective

A firm's capital structure consists of equity of ₦2,000,000 requiring a 12\% return, a bank loan of ₦1,500,000 at 9\% interest (tax‑deductible at 30\%), and trade credit of ₦500,000 with an implicit cost of 15\% (no tax shield). Calculate the firm's weighted average cost of capital (WACC) expressed as a percentage to two decimal places.

Answer Options

Correct Answer A. 10.24%
B. 9.68%
C. 11.12%
D. 12.45%
Correct Answer
A
Correct Option:
10.24%

About This Question

This is Neco 2021 Commerce Question 23. It is one of the objective questions from the 2021 Neco Commerce examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support