1. **Stating the problem:** Calculate the Cost of Debt, Cost of Financial Loan, Cost of Equity, Cost of Preference, Cost of Retained Earnings, Overall Cost of Capital, and WACC (Book Value and Market Value) for Ola Electric Mobility Inc. using the provided financial data. 2. **Formulas and explanations:** - Cost of Debt (Kd) = \( \frac{\text{Interest Expense}}{\text{Total Debt}} \times (1 - \text{Tax Rate}) \) - Cost of Financial Loan is generally the same as Cost of Debt if no separate data. - Cost of Equity (Ke) can be estimated using the Capital Asset Pricing Model (CAPM): \( Ke = R_f + \beta (R_m - R_f) \) but no beta or market return given, so approximate from net income and equity. - Cost of Preference (Kp) = \( \frac{\text{Preference Dividend}}{\text{Preference Share Price}} \) (no preference data given, so assumed zero or not applicable). - Cost of Retained Earnings is generally equal to Cost of Equity. - Overall Cost of Capital (WACC) = \( \frac{E}{V} Ke + \frac{D}{V} Kd (1 - T) \) where E = Equity, D = Debt, V = E + D, T = Tax rate. 3. **Given data extraction:** - Finance Cost (Interest Expense) for 2025 = 141,339 - Loans and Borrowings (Debt) for 2025 = 948,422 - Shareholders' Equity (Book Value) for 2025 = 2,228,781 - No tax provision or tax expense, assume Tax Rate T = 0 (from statement) - Market Cap approx = 17,850,000,000 (₹17,850 Crores) - Equity Market Value (E) = 17,850,000,000 - Debt Market Value (D) = 948,422 (assumed book value as proxy) 4. **Calculate Cost of Debt (Kd):** Since no tax, \( Kd = \frac{141,339}{948,422} = 0.149 \) or 14.9%. 5. **Cost of Financial Loan:** Same as Cost of Debt = 14.9%. 6. **Cost of Equity (Ke):** Using book values and net income: \( Ke = \frac{\text{Net Income}}{\text{Equity}} = \frac{-2,546,988}{2,228,781} = -1.143 \) or -114.3% (negative due to loss, so not meaningful). Using market cap: Net Income is negative, so cost of equity cannot be positive from earnings; assume cost of equity as market expected return, typically 12% (assumed). 7. **Cost of Preference:** No data, assume 0%. 8. **Cost of Retained Earnings:** Same as Cost of Equity = 12% (assumed). 9. **Overall Cost of Capital (WACC) using Book Values:** \( V = E + D = 2,228,781 + 948,422 = 3,177,203 \) \( WACC = \frac{2,228,781}{3,177,203} \times 0.12 + \frac{948,422}{3,177,203} \times 0.149 = 0.0841 + 0.0445 = 0.1286 \) or 12.86%. 10. **Overall Cost of Capital (WACC) using Market Values:** \( V = 17,850,000,000 + 948,422 = 17,850,948,422 \) \( WACC = \frac{17,850,000,000}{17,850,948,422} \times 0.12 + \frac{948,422}{17,850,948,422} \times 0.149 \approx 0.12 + 7.9 \times 10^{-6} = 0.120008 \) or approximately 12.0%. **Final answers:** - Cost of Debt = 14.9% - Cost of Financial Loan = 14.9% - Cost of Equity = 12% (assumed due to negative earnings) - Cost of Preference = 0% - Cost of Retained Earnings = 12% - Overall Cost of Capital (Book Value) = 12.86% - Overall Cost of Capital (Market Value) = 12.0%