4. A company was recently formed to manufacture a product. It has the following Capital Structure: S. No. Particulars Amount (Rs.) 1. 2. 3. 4. 9% Debentures 7% Preference Shares Equity Shares (24,000 Equity Shares of Rs. 10 each) Retained Earnings 6,00,000 2,00,000 6,00,000 4,00,000 Total 18,00,000 The Market Price of Equity Shares is Rs. 40 per share. A dividend of Rs. 4 per share is proposed. The company has a marginal tax rate 50%. Compute the Weighted Average Cost of the Capital of the company.

4. A company was recently formed to manufacture a product. It has the following Capital Structure: S. No. Particulars 1. 9% Debentures 2. 7% Preference Shares 3. Equity Shares ( 24,000 Equity Shares of Rs. 10 each) 4. Retained Eamings Amount (Rs.) 6,00,000 2,00,000 6,00,000 4,00,000 Total 18,00,000 The Market Price of Equity Shares is Rs. 40 per share. A dividend of Rs. 4 per share is proposed. The company has a marginal tax rate 50%. Compute the Weighted Average Cost of the Capital of the company