Problem $5$The following information has been extracted from the balance sheet of Fashions Ltd$.$ as on $31-12-1998$: a$)$ Equity share capital $400$ b$)12\%$ debenture $400$ c$)18\%$ Term Loan $1,200$a$)$ Determine the weighted average cost of capital of the company. It had been paying dividends at a consistent rate of $20\%$ per annum.b$)$ What difference will it make if the current price of the Rs$.100$ share is Rs$.160?$c$)$ Determine the effect of Income Tax on the cost of capital under both premises $($Tax rate $40\%).$