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    Question

    A company has the following capital structure: Equity

    ₹40 lakh, Preference ₹10 lakh, Debt ₹20 lakh. Cost of equity = 15%, cost of preference = 10%, before-tax cost of debt = 8%, tax rate = 30%. Compute the Weighted Average Cost of Capital (WACC).
    A 12.4% Correct Answer Incorrect Answer
    B 11.6% Correct Answer Incorrect Answer
    C 13.0% Correct Answer Incorrect Answer
    D 12.9% Correct Answer Incorrect Answer
    E 10.8% Correct Answer Incorrect Answer

    Solution

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