Prabhat Tech Ltd has the following specific cost of capital along with the indicated book value and market value weights. Cost of Equity 15% Cost of Long-term debt after tax 8.2 % Preference Shares 12...


Prabhat  Tech Ltd has the following specific cost of  capital along with the indicated book value and market value weights.



Cost of Equity 15%
Cost of Long-term debt after tax 8.2 %
Preference Shares 12 %



Determine the appropriate weighted average cost of capital using book value and market value weights.


Source of Capital<br>Book Value (BV) | Market value (MV)<br>Equity Share Capital<br>22, 00,000<br>23,10,000<br>Long term debt<br>5,00,000<br>4,80,000<br>Preference Share Capital<br>3, 00,000<br>3,00,000<br>Total<br>30,00,000<br>30,90,000<br>

Extracted text: Source of Capital Book Value (BV) | Market value (MV) Equity Share Capital 22, 00,000 23,10,000 Long term debt 5,00,000 4,80,000 Preference Share Capital 3, 00,000 3,00,000 Total 30,00,000 30,90,000

Jun 08, 2022
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