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 (WAC

  • C .
A 12.4%
B 11.6%
C 13.0%
D 12.9%
E 10.8%
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