Blog
please answer the following questions
MGT 102 Finance for the Non-Financial ManagerAssignment #8 Chapter 9 Homework QuestionsPlease refer to the Course Text and answer the following Questions:1) From the following financing sources, identify the company’s financial and capitalstructure and calculate the proportion or weight of each.Sources AmountsRetained Earnings $650,000Share Capital $500,000Long Term Borrowings $1,200,000Working Capital Loan $100,000Short-term Borrowings $300,0002) Tom and Sandra are considering buying a house valued at $350,000. They havecombined savings of $30,000, and the bank approved a mortgage at $300,000.Another bank approved them for a $20,000 second mortgage. If they invested theirmoney in guaranteed certificates, they would be able to earn 4%. The interest ratesoffered at the banks were 6% for the first mortgage and 7% for the second. Calculatetheir cost of capital.