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You plan to open a supermarket and you got the following data from your accountant. You plan to open a supermarket and you got the
You plan to open a supermarket and you got the following data from your accountant.
You plan to open a supermarket and you got the following data from you accountant:
| Market Value (AUD) | Cost | |
| Loan from Town Bank | 420,000 | 8.00 |
| Preferences Shares | 1,100,000 | 9.00 |
| Ordinary Shares | 3,000,000 | 13.00 |
Calculate the Weighted average cost of capital (WACC) of this business. [4 marks]
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