weighted average overall cost

问题如下：

The total interest costs of a bank are 65 million, the total funds raised is 1000 million, of which 750 million is earning assets. The other operating costs is 10 million. The tax rate is 35%. Stockholders’ investment of the bank is 100 million. Assume the required rate of return of the stockholders’ investment is 12%.

According to the information above and use the historical average cost approach, what is the weighted average overall cost of capital?

选项：

A.

10%

B.

12.5%

C.

13.5%

D.

7.5%

解释：

考点：对Managing Non-deposit Liabilities的理解

答案：B

解析：

Breakeven cost rate on borrowed funds invested in earning assets = (Interest + other operating costs) / All earning assets = (65+10)/750 = 10%

Weighted average overall cost of capital = breakeven cost on borrowed funds + before-tax cost of the stockholders’ investment

= breakeven cost + after-tax cost of stockholders’ investment/(1-tax rate) × Stockholders’ invest/ Earning assets

=10% + 12%/(1-0.35)×100/750 = 12.5%