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    Terrique's Avatar
    Terrique Posts: 1, Reputation: 1
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    #1

    Mar 10, 2015, 04:19 AM
    Cost of Capital
    The Company has $ 1 m debenture stock in issue quoted at $50 per $100 of nominal stock,$625 000 preference shares of $1 each quoted at 40 cents ; and 5 m ordinary shares standing at 25 cents. The cost of Capital of these securities is 9% , 12 % , and 18 % respectively. This capital structure is to be maintained. What is the combined cost of Capital ?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Mar 11, 2015, 03:08 PM
    What do you think? Prepare a table and average the outcomes
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