Question 10 Kashmi is the largest and most cestul specially woods company based in Bangalore India. It has not entered the North American marketplace yet but is cordering establishing both manufacturing and distribution facilities in the United States through a wholly owned bdary. It has approached two different test banking assors Goldman Sachs and Bank of New York, for some of what its costs of capital would be veral years to the future when it pimed to list is American sudary on a US stock achang Using the following assumptions by the two different achisors cakulate the prospective costs of debt taxty, and the WACC for Kastes (US) Assumption Symbol Goldman Sachs Bank New York Components of bete Estenate of contention between secunty and market PM 0.78 031 Emandard den of Kami's retur 19 01 Estimate of standard dution of markets retum 17.046 1604 Rad free enterest kuf 3.5% 3.5% Ime of Kamil's cou of debt in US market kd 6.995 Este market retum, forward-looking km 11.09 10.49 Corporate as the t 35096 35.09 Proportion of del DV 399 Proportion EM 614 om According to Bank of New York. Kashmin' WACC is prints 9.16% 8.08% 8.46% 7.399