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  3. tod plc has 1 million loan notes quoted at $50 per

TOD plc has 1 million loan notes quoted at $50 per $100 nominal value ;$625000...

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Finance

TOD plc has 1 million loan notes quoted at $50 per $100 nominal value ;$625000 preferance shares of $1 each quoted at 40c and 5 million ordinary $1 shares quoted at 25c. the cost of capital of these securities is 9%,12% and 18% respectively. this capital structure is to be maintained

q1 calculate the weighted average cost of capital (WACC)?

q2 when can WACC be used as a discount rate for project appraisal give three examples and support you answer?

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