Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Finance Cost of Capital

Suppose that a firm has 20% debts and 80% equity in its capital structure. The cost of debts and cost of equity are assumed to be 10% and 15% respectively, What is the overall cost of capital?

1
11%
2
12%
3
13%
4
14%
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