Q No. 2: You are given the following information for Gull Jee Group: Visit us at ww.mhhe.com/bm7e Long-term debt outstanding: Rs. 300,000/- Current yield to maturity (rdebt): 8% Number of shares of common stock: 10,000 Price per share: Rs. 50 Book value per share: Rs. 25 Expected rate of return on stock (requity): 15%

You are required to calculate GULL JEE Companys cost of capital (WACC).

(4 marks)