Neco Model Questions Vol1 2018 Commerce Question 45
Practice objective / multiple choice question 45 from the 2018 Neco Model Questions Vol1 Commerce examination.
A company's capital structure consists of 40 % equity at a cost of 12 % per annum, 35 % long‑term debt at a pre‑tax cost of 9 % per annum, and 25 % short‑term loan at a pre‑tax cost of 7 % per annum. The corporate tax rate is 30 %. Compute the weighted average cost of capital (WACC) for the company (expressed as a percentage to two decimal places).
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About This Question
This is Neco Model Questions Vol1 2018 Commerce Question 45. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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