Cost of Debt Q.2. The following data is related to a business organization. Capital Equity Rs. Debt Rs. Cost of Equity Structures 20,000,000 0 0.22 2 15,000,000 5,000,000 0.224 3 12,000,000 8,000,000 0.228 4 10,000,000 10,000,000 0.252 5 6,000,000 14,000,000 0.326 0.16 0.16 0.16 0.16 0.16 Calculate the following: 1. Return on Equity in Rupees for each capital structure 2. Return on Debt in Rupees for each capital structure 3. Total return on investment in Rupees 4. Overall cost of capital Ko (in decimals or in percentage) 5. Optimal Capital Structure 25 marks