Question: Question 4: Discount rates (5 marks) (a) Enter a formula to work out the portion (percentage) of debt from each source (1 mark). (b) What

Question 4: Discount rates (5 marks)

(a) Enter a formula to work out the portion (percentage) of debt from each source (1 mark).

(b) What is the weighted average cost of debt of a company with these portions and costs of debt? Please use a SUMPRODUCT function and a SUM array function to calculate the weighted average cost of debt (4 marks - no marks for answers without using a SUMPRODUCT function and a SUM array function).

Source of debt	Amount of debt	Portion of debt	Cost of debt
Bank overdraft	$800,000		13.75%
Bank loan	$9,400,000		8.25%
Bond issue, Nov 2018	$15,000,000		7.50%
Bond issue, March 2019	$11,500,000		6.75%

In excel please

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