Pecking order hypothesis. Rachel can raise capital from the sources in the popup window: LOADING.... What is Rachel's weighted average cost of capital if she needs to raise a. $10,000? b. $25, 000? c. $35,000?
a. What is Rachel's weighted average cost of capital if she needs to raise $10,000?
Source of Funds | Parents | Friends | Bank loan | Credit card |
Interest Rate | 0% | 5.5% | 11.5% | 15.5% |
Borrowing Limit | $11,000 | $2,000 | 16,000 |
$6,000 |
Pecking order hypothesis. Rachel can raise capital from the sources in the popup window: LOADING.... What...