The balance sheet of W Ltd. at the end of year zero is as follows: Liabilities Assets Shareholders funds Net fixed assets 550 Equity capital (20,00,00,000 shares of ₹10 each) 200 Networking capital 200 Reserves and surpl

The balance sheet of W Ltd. at the end of year zero is as follows: Liabilities Assets Shareholders funds Net fixed assets 550 Equity capital (20,00,00,000 shares of ₹10 each) 200 Networking capital 200 Reserves and surplus 300 Loan funds (rate 10%) 250 Total 750 Total 750 The return on assets (Net Operating Profit After Taxes (NOPAT)) is expected to be 18% on the asset value at the beginning of each year. The growth rate in assets and revenues will be 30% for the first 3 years, 18% for the next 2 years and 10% thereafter. The effective tax rate of the firm is 34%. The pre tax cost of debt is 10%. The cost of equity is 24%. The debt equity ratio of the firm will be maintained at 1 : 2. Calculate weighted average cost of capital.