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Determine the appropriate weighted average cost of capital

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Question - From the following information supplied to you, determine the appropriate weighted average cost of capital:

Cost of equity 12 per cent

After-tax cost of long-term debt 7 per cent

After-tax cost of short-term loans 4 per cent

Source of capital Book value ( )

Equity 5,00,000

Long-term debt 4,00,000

Short-term debt 1,00,000

Total 10,00,000

Reference no: EM133101842

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