Question
Rio Tinto has $300 million capital, of which, 40% is contributed by equity holders. Shareholders required rate of return is 11% p.a. Creditors charge 6%
Rio Tinto has $300 million capital, of which, 40% is contributed by equity holders. Shareholders required rate of return is 11% p.a. Creditors charge 6% p.a. interest. Rio Tintos Weighted Average Cost of Capital is
A.
8.64%
B.
8%
C.
7.2%
D.
8.8%
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Contemporary Mathematics
Authors: OpenStax
1st Edition
1711470554, 978-1711470559
