6. You are given the following Capital Structure of a public limited company: `/lakh Equity (`10 each)

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● 6. You are given the following Capital Structure of a public limited company:

`/lakh Equity (`10 each) 100 Reserves and Surplus 50 9% Debentures (`100 each) 150 300 The other particulars are as follows:

(i) Current market price per share is `90. Current dividend per share is `13.50. Growth rate in dividend is 5%.

(ii) Corporate tax rate is 40%.

Calculate cost of each of the sources of capital and weighted average Cost of Capital taking market value as weights.

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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