The capital structure of ABC Ltd. consists, debentures, preference share, equity shares and retained earnings. The weight of each security is 28.57%, 9.53%, 14.28% and 47.62% respectively. The specific cost of capital is

CS Executive · Financial and Strategic Management · PYQS · December 2021
The capital structure of ABC Ltd. consists, debentures, preference share, equity shares and retained earnings. The weight of each security is 28.57%, 9.53%, 14.28% and 47.62% respectively. The specific cost of capital is 14.6%, 10.50%, 20.00% and 18.00% respectively. Determine the weighted average cost of capital (WACC).
(A) 16.60%
(B) 18.20%
(C) 16.42%
(D) 15.60%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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