How do work out discount rate the sources of financing

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After arranging the following sources of funding:

  1. $200,000 from a 5 year fixed interest loan whose annual loan payments are $48,126.91
  2. $250,000 from a 5 year zero-coupon bond with a face value of $350,000
  3. $300,000 from an ordinary share issue where a dividend of $18,000 will be paid in one year and it is expected to grow at 3% per annum
  4. $250,000 from a 5 year coupon-paying bond issue whose coupon rate is 7% and face value is $250,000.

Question 1: How do work out discount rate the sources of financing?

Reference no: EM132534855

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