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A firm has 8 0 bonds outstanding that are selling at their par value of Rs . 1 , 0 0 0 each. Bonds with
A firm has bonds outstanding that are selling at their par value of Rs each. Bonds with similar characteristics are yielding a pretax percent. The firm also has shares of equity stock outstanding. The stock has a beta of and sells for Rs a share. The RBI year Tbill is yielding percent, the market risk premium is percent, and the firm's tax rate is percent. What is the firm's weighted average cost of capital?
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