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This was all that was provided. Question 1- 12 marks Infosys Limited is a multinational corporation that provides business consulting, information management and technology and

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Question 1- 12 marks Infosys Limited is a multinational corporation that provides business consulting, information management and technology and outsourcing services with a global revenue of Indian Rupee (INR) 817.5 billion (or USD 10.9 billion) in fiscal year ended March 31, 2020. In addition to its home stock market listing in Mumbai, the Company is also listed in stock exchanges in New York and its ADR (American Depository Receipts) were traded in numerous European markets. R RM Rw The following information is available: Risk-free rate: Mumbai market index return World market index return Standard Deviation of Return on Infosys's shares Standard Deviation of Return on Mumbai market Correlation Coefficients between Returns of Infosys share and Mumbai market Standard Deviation of Return on World market Correlation Coefficients between Returns of Infosys share and World market = 0.58% = 9.61% = 9.38% = 0.95 = 1.24 SD Infosys SDN COR (Rinforys, Rm) = 1.28 SDW = 0.94 COR (Rinfos, Rw) = 0.80 1A. Compute Infosys's betas (i) related to its home Mumbai market and if the Company has access to the integrated World market in raising equity capital. (3 marks) In addition, Infosys discloses company-specific information and targets below: Cost of debt currently paid = 3.33% Target debt to equity ratio = 0.10: 1 Current corporate tax rate = 24.0% 1B. Calculate the cost of equity capital for Infosys, assuming that the Mumbai market is not integrated, and Infosys were only listed in its home market. (3 marks) 1C. Recalculate the cost of equity capital for Infosys assuming that the Mumbai market is globally integrated, and Infosys has perfect access to global equity market. (3 marks) 2 1D. Calculate Infosys's weighted average cost of capital (WACC), considering that the equity market is globally integrated

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