Question 1 D. From the following information supplied to you, determine the appropriate weighted average cost of capital: Cost of equity 12 per cent After-tax cost of long-term debt 7 per cent After-tax cost of short-term loans 4 per cent Source of capital Book value (7) Equity 5,00,000 Long-term debt 4,00,000 Short-term debt 1,00,000 Total 10,00,000 W (5+5+5+5)