A firm has invested Rs.10000 in its assets, it has used debt to the extent of 40%,

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A firm has invested Rs.10000 in its assets, it has used debt to the extent of 40%, the cost of debt is 10%, the cost of equity is 15%, the beta of equity is 1.2 and tax rate is 30%. Given this, what would be the cost of capital at 20% debt?

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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: May 30, 2023 07:22 AM

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A firm has invested Rs.10000 in its assets, it has used debt to the extent of 40%,

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To calculate the cost of capital at 20 debt we need to use the weighted average cost of capital WACC ... View the full answer

Engineering Economic Analysis

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