Question: Q 3 . ( a ) Calculate weighted average cost of capital ( WACC ) for Chirag Pharmaceuticlas Ltd . through Book Value as well

Q3.(a) Calculate weighted average cost of capital (WACC) for Chirag Pharmaceuticlas Ltd. through Book Value as well as Market Value Method (Before tax as well as after tax) with the help of following data: Equity Share Capital (1,00,000 shares of 10 each)-10,00,00012% Preference Capital -20,00,00010% Debentures -30,00,000 Other Information: i. Ke =15%ii. Market Price of Equity Share is 125.iii. Preference Shares are priced at par.iv. Debentures are priced at 80%.v. Applicable tax rate is 30%.

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