The capital structure of KC Ltd. is : Equity Share Capital ₹250 lakh, Long-term Debt ₹110 lakh, Bank Overdraft ₹40 lakh. The average rate of return on similar types of companies is 20%, while risk-free return is 10%. Rat
CS Executive · Corporate and Management Accounting · PYQS · December 2019
The capital structure of KC Ltd. is : Equity Share Capital ₹250 lakh, Long-term Debt ₹110 lakh, Bank Overdraft ₹40 lakh. The average rate of return on similar types of companies is 20%, while risk-free return is 10%. Rate of interest charged by bank is 18%. Weighted Average Cost of Capital (WACC) will be :
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Financial Management
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