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Cost of capital for bank overdraft

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1. The 90 day bank bill rate is quoted as 5.1 in the financial press. What is the correct cost of capital kbb to be used in the WACC calculation. Express as a number accurate to four places (to the nearest basis point). Do not enter the % sign (eg 5.5671% should be entered as .0557).

2. What is the cost of capital for bank overdraft (kbo). The overdraft rate is 7.6 % pa compounded 12 times a year? Answer as a percentage to two decimal places.

Reference no: EM131066568

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