Zanzibar Bhd Has The Following Capital Structure:

Source of Financing After-Tax Cost Cost of Fund

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RM’000 RM ‘000

Bond 8% 40,000

Term loan 9% 20,000

Overdraft 13%. 4,000

Preferred Stock 10% 10,000

Common Equity 14% 50,000

Accounts payable 15,000

Required:

Determine the company`s total cost of funds.

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