Which of the following cost of capital requires to adjust taxes?
Marginal Cost of capital is the cost of:
Firm’s Cost of Capital is the average cost of:
A company has a financial structure where equity is 70% of its total debt plus equity. Its cost of equity is 10% and gross loan interest is 5%. Corporation tax is paid at 30%. What is the company’s weighted average cost of capital (WACC)?
What is the overall (weighted average) cost of capital when the firm has ₹ 20 crores in long-term debt, ₹ 4 crores in preferred stock, and ₹ 16 crores in equity shares? The before-tax cost for debt, preferred stock, and equity capital are 8%, 9%, and 15%, respectively. Assume a 50% tax rate.