Compute PT DKSs weighted-average cost of capital

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Question - The following data pertain to PT Darma Karya Sentosa:

Interest rate on debt capital: 9%

Cost of equity capital: 12%

Before-tax operating income: Rp 35 T

Market value of debt capital: Rp. 60 T

Market value of equity capital: Rp 120 T

Total assets: Rp 150 T

Income tax rate: 30%

Total current liabilities: Rp 15 T

Required - Compute PT DKSs weighted-average cost of capital.

A. 10,1 %

B. 11,1 %

C. 12,1 %

D. 13,1 %

E. 14,1 %

Reference no: EM133000690

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