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XY has a weighted average cost of capital (WACC) of 12%.

XY has a weighted average cost of capital (WACC) of 12%. The debt:equity ratio is 1:3 and this is considered low for the industry. XY needs to raise finance to purchase new machinery in the coming year.

Which of the following forms of finance is most likely to increase the WACC?

A.

Rights issue of equity shares

B.

6% bank loan

C.

8% preference shares

D.

Finance lease

CIMA F2 Summary

  • Vendor: CIMA
  • Product: F2
  • Update on: Jul 29, 2025
  • Questions: 268
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