The capital structure of ABC Ltd includes debt of Rs. 55 lakhs and Rs. 45...
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Accounting
The capital structure of ABC Ltd includes debt of Rs. 55 lakhs and Rs. 45 lakhs of equity. The debt carries interest rate of 15% per annum. The average return of Sensex is 18%. The beta coefficient of ABC Ltd is 0.65. Tax rate is 25%. The current risk-free rate is 10%. What is the overall cost of capital of ABC Ltd?
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