Question
Weighted average Cost of capital for Lavi Ltd. is 12%.
Lavi Ltd. has issued equity worth Rs. 45 lakhs, 5% debt worth Rs. 15 lakhs and 6% preference shares worth Rs. 10 lakhs. The manager of this company wants to know the cost of equity applicable to the firm. The tax rate is 10%.Solution
WACC = Ke * We + Kp * Wp + Kd* (1-t) * Wd Let us calculate the Weight of each source of capital We = 45 / 70 = 0.64 Wd = 15 / 70 = 0.21 Wp = 10 / 70 = 0.15 Let us substitute the values in the equation 12% = Ke * 0.64 + 0.15 * 6% + 5% * (1-0.1) * 0.21 Ke = 15.8%
Select the option that is related to third letter cluster in the same way second letter cluster is related to first letter cluster.
STABLE: XYVGQ...
If 74 × 35 = 3, 35 × 13 = 4, 54 × 42 = 3, then 78 × 44 =?
Select the option that is related to fourth letter-cluster in the same way second letter cluster is related to first letter-cluster.
Rose: Flo...
Select the option in which the numbers are related in the same way as the numbers in the following set.
[36, 18, 36]
[54, 29, 50]
...In a certain code language, ‘plant is life’ is written as ‘ni vi di, ‘get me plant’ is written as ‘hi di ri’, and ‘get is tree’ is wri...
In the given arrangement, which element is 5th to the left of 4th letter from the right end?
Select the set in which the numbers are related in the same way as are the numbers of the given set.
8, 64, 512
- Select the option that is related to the fifth term in the same way as the second term is related to the first term and the fourth term is related to the t...
Given set: [40, 36, 28]
Consider the following statements:
Assertion (A): The President of India is not the constitutional head of the State.
Reason (R): The Indi...
Relevant for Exams:
