To finance a new project costing $30 million, a company borrowed $21 million at 16% per year interest and used retained
Posted: Sun Jun 05, 2022 11:34 am
To finance a new project costing $30 million, a company borrowed
$21 million at 16% per year interest and used retained earnings
valued at 12% per year for the remainder of the investment. The
company’s weighted average cost of capital for the project was
closest to:
(a) 12.5% (b) 13.6% (c) 14.8% (d) 15.6%
$21 million at 16% per year interest and used retained earnings
valued at 12% per year for the remainder of the investment. The
company’s weighted average cost of capital for the project was
closest to:
(a) 12.5% (b) 13.6% (c) 14.8% (d) 15.6%