Question: Weighted average cost Risetoshine Ltd. has determined its optimal capital structure, which comprises the following: Form of capital WeightAfter-tax cost Long-term debt 60% 5% Preference

Weighted average cost

Risetoshine Ltd. has determined its optimal capital structure, which comprises the following: Form of capital WeightAfter-tax cost Long-term debt 60% 5% Preference shares 15% 13% Ordinary shares 25% 10% The weighted average cost of capital is ... . A. 7.45% . O B. 8.35% . O C. 9.65% . O D. 11.43%

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