1. Wisconson Company has assets of `32,00,000 that have been financed by `18,00,000 of equity (shares of...
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● 1. Wisconson Company has assets of `32,00,000 that have been financed by `18,00,000 of equity (shares of `100 each), general reserve of `3,60,000 and debt of `10,40,000. For the year ended March 31, 2002 the company’s total profits before interest and taxes were
`6,23,200. Wisconson pays 8% interest on borrowed capital and is in a 40% tax bracket.
The market value of equity as on March 31, 2002 was `150 per share. What was the weighted average cost of capital? Use market values as weights.
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Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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