alleryStart learning →Equity at market Rs 300, debt Rs 100, Ke 15%, after-tax Kd 8%: WACC?
A13.25%
B10.0%
C12.0%
D11.5%
Answer & Solution
Correct answer: A. 13.25%
Market weights are 75:25, so 0.75 x 15 + 0.25 x 8 = 13.25%.
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