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MK Berhad MK Berhad required capital expenditure of RM20 million. The money will be raised by issuing RM4 million of sukuk (cost of debt: 6.32%),
MK Berhad
MK Berhad required capital expenditure of RM20 million. The money will be raised by issuing RM4 million of sukuk (cost of debt: 6.32%), RM4 million of preferred stock (cost of preferred stock: 3.5%), and the balance via common stock (cost of common stock: 4.5%).
- Calculate the weight of common stock in MK Berhad's capital structure.
- The weighted average cost of capital for for MK Berhad is
- Explain ONE (1) importance of assessing company's weighted average cost of capital.
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