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Sudara PLC has Rs. 35,000,000 of common shares and Rs. 20,000,000 debts. Current risk-free
rate is 6 percent, market return is 8 percent. Company has a beta coefficient of 1.3. During
the last year, it issued Rs. 45,000,000 bonds paying 12 percent coupon annually maturing in
10 years. The par value of the bond is Rs.1000 and the market value of the bond is Rs. 950.
The company’s debt is currently yielding 10 percent. The company’s tax rate is 20 percent.
Required: Calculate the weighted average cost of capital of the Sudara PLC.

Sudara PLC has Rs 35000000 of common shares and Rs 20000000 debts Current riskfree rate is 6 percent market return is 8 percent Company has a beta coefficient o class=


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