Question: Question 2 5 If the project is funded with 2 0 % in retained earnings, 4 0 % in common stocks, 3 0 % bond

Question 25
If the project is funded with 20% in retained earnings, 40% in common stocks, 30% bond and 10% in preferred stock. Cost of capital for each source of capital % of capital Cost of capital %
Retained earning 20,9
Common stocks 40,12
Bond 30,8
Preferred stock 10,10
a.10%
b.9.75%
c.25%
d. None of the above
 Question 25 If the project is funded with 20% in retained

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