- 05/27/2019 at 4:54 pm #1005373EduGorillaKeymasterSelect Question Language :
Directions: Acme Ltd. issued 2 million equity shares publically at Rs 20/- per share, which are currently trading at Rs 30/-. The current risk free rate can be taken as 5% with market risk premium as 10%. The company has a beta coefficient as 1.5. Last year the company issued 30,000 bonds of Rs 1,000 par by giving 11% interest every year with a maturity period of 10 years. If the bonds are trading at Rs 900, with tax rate as 20%, then:
Calculate the weighted average cost of capital?
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