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Alpha Corporation requires a funding of Rs . 2 5 0 million for its capital expenditure plans. It has decided to raise 4 0 %

Alpha Corporation requires a funding of Rs.250 million for its capital expenditure plans. It has decided to raise 40% funding in the form of equity and the balance is in the form bonds. The cost of equity is 15%, and the cost of debt, pre-tax is 8%. The firms tax rate is 30%. What is the Weighted Average Cost of Capital for the firm?
a.
10.85%
b.
9.36%
c.
11.38%
d.
12.45%

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