The capital structure of A Ltd. comprises of the following: Equity Share Capital: ₹4 lakh 8% Debentures: ₹1 lakh Value of Beta is 2, associated risk-free rate of return and market risk premium are 5% and 4% respectively.
CS Executive · Financial and Strategic Management · PYQS · June 2022
The capital structure of A Ltd. comprises of the following: Equity Share Capital: ₹4 lakh 8% Debentures: ₹1 lakh Value of Beta is 2, associated risk-free rate of return and market risk premium are 5% and 4% respectively. A Ltd. falls in 30% tax bracket. The weighted average cost of capital of the company will be :
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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