The Talent-Z Ltd is an Edu-tech company. The company has revenue of Rs 1.5 Mn in the year 2022-23. The fixed cost of company are Rs 0.2 Mn and variable costs were 60% of the sales. The company is expecting consistent EBIT for the near future as well. The total assets of the company are Rs 4 Mn and company is wholly financed with equity. The company has issued 0.1 Mn shares and the current share price is Rs 30 per share with P/B ratio of one. The company is planning to revise its capital structure by introducing debt in it. It is planning to raise a debt of Rs 1.5 Mn and buy-back the same amount of equity capital from the market. The debt will be issued at risk-free rate of return which is currently at 5% p.a. The current market rate of return is 15% p.a. At present the company has an unlevered beta of 0.8. Use the above information to answer Q11-Q12 Q11. What will be the overall cost of capital if the MM-II applies? marks)