Homework Answers
| Cost OF Debt = Interest ( 1 - Tax) | |||||
| = 11% * ( 1- 0.31) | |||||
| = 11% * 0.69 | |||||
| 7.59% | |||||
| Particlulars | Weight | Ratio | Cost | WACC ( Ratio X Cost) | |
| Equity Stock | 1.00% | 60% | 19.00% | 11.38% | |
| Debt | 0.67% | 40% | 7.59% | 3.05% | |
| Total | 1.67% | 100% | 14.42% | ||
| Debt Equity Ratio = 0.67% | |||||
| It Means Debt is 0.67 and Equity is 1 | |||||
| Answer = Option 5= 14.42% | |||||
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