Mathematics · Weighted Average Cost of Capital (WACC)
An infrastructure Special Purpose Vehicle (SPV) is planning to raise ₹800 crore to fund a solar park. The funding plan consists of ₹200 crore in Equity and ₹600 crore in Debt. The Cost of Equity is estimated at 15%. The Debt is raised at an interest rate of 10%. The corporate tax rate is 25%. Calculate the Weighted Average Cost of Capital (WACC) for this project.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 110.500%
- 28.750%
- 311.250%
- 49.375%✓
Correct answer
9.375%
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