And economic value added?

Use the following information to answer the following 2 questions: Revenue $ 2,000,000 Cost of sales (1.200.000) Gross profit 800,000 Expenses Operating expenses (S 400,000) Finance costs _(100.000 Total expenses (500.000) Profit before taxes 300,000 Income tax expense (120.000) Profit for the year $ 180,000 The company's three major sources of financing are as follows: Short-term borrowings S 200,000 Long-term borrowings 600,000 Share capital 400,000 The company is able to obtain a 13.0% interest rate on its short-term borrowings and 11.0% on its long-term borrowings. The cost of share equity is estimated at 15.0%. Question 35 (1 point) The company's cost of capital is 11.38% 8.98% 9.58% 7.34%