Problem
In a world with no taxes, a company presents the following investment summary:
|
Financing mode
|
Book value
|
Market value
|
Cost
|
|
Debt
|
3,000,000
|
2,800,000
|
4.8%
|
|
Common shares
|
1,108,000
|
2,500,000
|
13%
|
Determine this company's weighted average cost of capital.