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RSS Limited's has a debt of Rs. 500 Crores and wish to increase it to Rs. 1000 Crores. The cost of debt and equity are
RSS Limited's has a debt of Rs. 500 Crores and wish to increase it to Rs. 1000 Crores. The cost of debt and equity are 12% and 18% respectively. What is the overall cost of capital and value of the company under these two circumstances? What conclusion can you draw from the results. (6+4) RSS Limited's has a debt of Rs. 500 Crores and wish to increase it to Rs. 1000 Crores. The cost of debt and equity are 12% and 18% respectively. What is the overall cost of capital and value of the company under these two circumstances? What conclusion can you draw from the results. (6+4)
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