📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A company is planning a capital raise of ₹20 lakh,

      with 60% from equity (cost 16%) and 40% from debt (cost 10%). If the tax rate is 30%, calculate its post-tax Weighted Average Cost of Capital (WACC).
      A 13.2% Correct Answer Incorrect Answer
      B 14.5% Correct Answer Incorrect Answer
      C 13.6% Correct Answer Incorrect Answer
      D 12.4% Correct Answer Incorrect Answer
      E 11.0% Correct Answer Incorrect Answer

      Solution

      WACC = (0.6 × 16%) + (0.4 × 10% × 0.7) = 9.6% + 2.8% = 12.4%

      Practice Next
      More Accounts Questions
      ask-question