Bajaj Inc. has the following financial information: Current liabilities rs900,000. Long-term debt Total liabilities Preferred shares Common equity rs1,300,000 rs2,200,000 rs3,500,000 rs6,200,000 The long-term debt consists of a single bond issue paying 6% interest annually. These bonds currently yield. 7.5% in the market. The current cost of the preferred shares is 8%. The current cost of the common shares is. nearest tenth of a percent?. 12%. The company's tax rate is 10%. calculate the weighted average cost of capital of bajaj Inc (rounded to the nearest tenth Of a percent ?
(a) 9.4% (b) 10.2% (c) 9.8% (d) 9.2%
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ABCD
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Answer:
d
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