Find the weighted average cost of capital

Reference no: EM133432513

Question: A company has following capital structure: Equity-24 Cr, Debt-30cr, Preference shares-6 Cr. The expectation of each of these categories is 18%, 10% and 13% respectively. The applicable tax rate is 30%. Find the weighted average cost of capital. Does this capital structure allow the company to undertake a project with following cash flows.
Year Cash Flow
0   -1,00,00,000
1 27,00,000
2   27,00,000
3   27,00,000
4   27,00,000
5   27,00,000
6 6,00,000

Reference no: EM133432513

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