Question - What is the weighted average cost of capital:
total debt $1135000
total equity $1305000
share price $1.55
1,150,000 ordinary shares issued at $1
retained earnings $155000
dividend was $0.05 per share.
Dividends are expected to grow by 7% per year
550 debentures were issued with face value of $1000 trading at par value of 8.5%
mortgage loan $220000 at variable rate of 8.9%