Question: a) From the data shown below calculate the weighted average cost of capital. Source Ordinary shareholders Preference shareholders Lender 1 Lender 2 Amount (in 000)

a) From the data shown below calculate the weighted average cost of capital.

Source Ordinary shareholders Preference shareholders Lender 1 Lender 2 Amount (in 000)

Source Ordinary shareholders Preference shareholders Lender 1 Lender 2 Amount (in 000) Cost/expected return % 15,000 5,000 18 9 10,000 20,000 8 12 b) There are various sources of finance available to hospitality organisations in the short, medium and long term. Identify 6 different sources if finance capital and for each of those identified discuss its merits and associated cost of capital. (18 marks) (BAHA Stage Three-Strategic Management Accounting, September 2009)

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