Shyamali Limited is currently financed with ₹5,00,000 of 10% Debenture and ₹15,00,000 of Equity share. The equity share has a beta of 1.5, and the risk free rate is 6%, and the market risk premium is 4%. The tax rate is
CS Executive · Financial and Strategic Management · PYQS · June 2021
Shyamali Limited is currently financed with ₹5,00,000 of 10% Debenture and ₹15,00,000 of Equity share. The equity share has a beta of 1.5, and the risk free rate is 6%, and the market risk premium is 4%. The tax rate is 20%. What is the WACC of Shyamali Limited?
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Cost of Capital
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