Question
If cost of equity is 15% with weight 1/3 and cost of
debt is 10% with weight 2/3, calculate weighted average cost of capital. Rate of tax is 32%?Solution
Weighted Average Cost of Capital (WACC) = [cost of equity * weight of equity] + [cost of debt *(1-tax rate) * weight of debt] = [15%*1/3] + [10%* (1-32%) * 2/3] = 5% + 4.53% = 9.53%
What unique tribute was Shah Rukh Khan honored with by the Grevin Museum in Paris?
1st Khelo India Fencing Women's League is being held in which city?
How many entities did the Reserve Bank of India (RBI) add to its Alert List of unauthorised forex trading firms in October 2024?
In the event of the death of the girl child, what happens to the Sukanya Samridhi Account?
What groundbreaking initiative did the UN General Assembly adopt concerning AI systems?
Who won silver in men’s category in the BWF World Championships 2021 in Huelva, Spain?
Who presides over the joint session of the Indian Parliament?
Consider the following pairs with reference to various dynasties of Sultanate period and development of architectural features:
Election Commission launched 'Mission-929' in which state?
Which country leads the world in plastic pollution, according to a recent study?