Exercise No - 11 Deepika LTD has reported return for its last fiscal year as 12.5%. The company has outstanding debt of $27,000,000, Preference shares of $13,000,000 and Common equity valued at $53,000,000. The tax rate is 32.67%. It has paid $1,300,000 as interest expense on its debt, the preference shares paid a dividend of $1,300,000. The risk-free rate of return is 3.5%, while the return on the Dow Jones Industrials is 11% (Beta) and Deepika Limited's beta is 1.3. (Beta) Required: Measure / Determine the cost of Capital Write the analysis report