QUESTION 3 YJY Bhd is evaluating the optimal capital structure based on the information below: Source of Capital Percent
Posted: Fri Mar 04, 2022 9:37 am
QUESTION 3
YJY Bhd is evaluating the optimal
capital structure based on the information below:
Source of Capital
Percentage of
Financing
Debt
38%
Ordinary shares
42%
Preference shares
20%
Additional
information:
Share price
RM
4.10
Floatation
cost
RM
0.20
Share
price
RM1.20
Floatation
cost
RM0.11
Required:
Calculate the weighted average cost of
capital (WACC) for YJY Bhd.
YJY Bhd is evaluating the optimal
capital structure based on the information below:
Source of Capital
Percentage of
Financing
Debt
38%
Ordinary shares
42%
Preference shares
20%
Additional
information:
Share price
RM
4.10
Floatation
cost
RM
0.20
Share
price
RM1.20
Floatation
cost
RM0.11
Required:
Calculate the weighted average cost of
capital (WACC) for YJY Bhd.