Question
1) Calculate the WACC for M/s Antara Limited with the following information Capital Structure BV Share Capital 50,00,000 Retained Earnings. 2,50,000 Debentures 15,00,000 Bank Loan
1) Calculate the WACC for M/s Antara Limited with the following information
Capital Structure BV Share Capital 50,00,000 Retained Earnings. 2,50,000 Debentures 15,00,000 Bank Loan 2,00,000
Share price of M/s Antara Limited at the beginning of the year was Rs. 50 and end of the year was Rs. 55 per share. Dividend declared was Rs. 5. Beta of the Company was pegged at 0.6. M/s Antara had floated its Debentures at 8% fixed interest for 5 years. The bank had extended a loan on floating rate basis. Interest paid during the year was Rs. 10000. Government securities are earning a return of 4% currently
Subject (corporate finance) 10marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started