The company is in search of resources for a new investment of TL 3,000,000. As a financial manager, a) Find the current weighted average cost of capital according to the resource distribution below

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter16: Statement Of Cash Flows: Another Look
Section: Chapter Questions
Problem 18P
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The company is in search of resources for a new investment of TL 3,000,000. As a financial manager,

a) Find the current weighted average cost of capital according to the resource distribution below.

After Tax
Resource
Cost
Amount
Bank loan
1.750.000
%22
Bond
1.250.000
%20
Undistributed Profit
750.000
%27
Stocks
4.000.000
%30
Total Resources
7.750.000
Transcribed Image Text:After Tax Resource Cost Amount Bank loan 1.750.000 %22 Bond 1.250.000 %20 Undistributed Profit 750.000 %27 Stocks 4.000.000 %30 Total Resources 7.750.000
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