Neco 2024 Commerce Question 46
Practice objective / multiple choice question 46 from the 2024 Neco Commerce examination.
To finance a project the firm needs exactly \(\,5{,}000{,}000\)\, naira. It can raise funds by a bank loan at 12% per annum and by issuing shares at a cost of equity of 18%. At least 30% of the total finance must come from equity and the weighted average cost of finance must not exceed 14%. What is the maximum amount that can be borrowed from the bank loan (in naira)?
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About This Question
This is Neco 2024 Commerce Question 46. It is one of the objective questions from the 2024 Neco Commerce examination.
Difficulty level: Medium .
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