Question
A company has the following capital structure:
• Cost of Equity = 12% • Cost of Debt = 8% • Debt-to-Equity ratio = 1:1 • Corporate Tax Rate = 30% What is the Weighted Average Cost of Capital (WACC)?Solution
Step 1: Determine the weights Since the Debt-to-Equity ratio is 1:1, the capital structure is: • Debt = 50% • Equity = 50% Step 2: Apply the WACC formula      WACC = (E / V) × Re + (D / V) × Rd × (1-Тах) Where: E / V = 0.5 D / V = 0.5 Re = 12% Rd = 8% Тах = 30% WACC = (0.5 × 12%) + (0.5 × 8% × (1-0.3)) = 6% + (0.5 × 8% × 0.7) = 6% + 2.8% = 8.8%  Rounded off, WACC ≈ 9%
Which of the following is the correct spelling?Â
The term Intenational Law was first coined by-
Which of the following is not a requirement for trademark registration in India?
Pardon may be tendered to an accomplice under Section 306 CrPC when
According to the Motor Vehicle Act on application made by person entitled, the Claims Tribunal may issue a certificate for amount to ___________ for rec...
Deccan Rivers are fed by:
Which one is not an advantage of Arbitration?
 The Hon’ble Supreme Court of India has held in the case of _______ that sale of immovable property through GPA is not valid.
In which case it was held that Specific Relief Act is not an Exhaustive Law?
A, knowing the B has committed dacoity, knowingly conceals B in order to save him from legal punishment which offence has A committed ?
