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AfirmusesINR50million of debt,INR15million ofshort-termdebt, and INR 90million of common equity to finance its assets. If the before-tax cost of debt is 10%, after-tax cost of
AfirmusesINR50million of debt,INR15million ofshort-termdebt, and INR 90million of common equity to finance its assets. If the before-tax cost of debt is 10%, after-tax cost of short-term debt is 8%, and the cost of common equity is 16%, calculate the weighted averagecostofcapitalforthefirmassumingatax rate of 20%.
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