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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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