Question

The company has an equity rate of return of 12% and a debt rate of return of 6%. Its gearing ratio is 40%. The tax rate is 30%. Interest payments on debt are chargeable for tax. The weighted average cost of capital of the company is _________.

Select one:

a. 9.88%

b. 8.88%

c. 9.60%

d. 10.88%​

Answer 1

Answer:

9.88 ye hoga answer koi shak