Academic MBA Question:
Allied Industries has raised capital by way of Equity, Preference Shares and Debt at a cost of 18%, 12% and 10% respectively.
| Capital (in Rs million) | Book Value | Market Value |
| Equity | 500 | 1000 |
| Preference | 250 | 250 |
| Debt | 250 | 250 |
Calculate the weighted average cost of capital based on
a. Market Values (5 Marks)
b. Book Values. (5 Marks)
Academic Assignment Answer:
