The following is the capital structure of Astra Products Limited, as of March

$31,2022$:

The Equity Shares has a beta of $0\mathrm{.}98,$ while the market risk premium is $7\mathrm{.}5\%$

and the risk$-$free rate is $4\mathrm{.}5\%.$ The market price of $10\%$ irredeemable

preference shares is Rs$.\frac{93}{?}-$ per share $($face value Rs$.100/-).$ Term Loans

are expected to trade at their book values. The marginal tax rate is $35\%.$

Estimate the hurdle rate which the company should adopt to evaluate its

normal capex projects.