maximization? (K4)
13) A firm has the following capital structure and after-tax cost for the different sources of funds used:
(K3)
Sources of funds Amount(Rs) Proportion
After tax cost(2)
Debt
1500000
25
5
Preference shares 1200000
20
10
Equity shares
1800000
30
12
Retained Earnings 1500000
25
Total
6000000
1.00
You are required to compute the Weighted average cost of capital.
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Explanation:
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