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5. ABC Ltd. has the following capital structure as on March 31, 2019. Equity share Capital (Rs. 10/- per share) 9% Preference Shares 10% Debentures
5. ABC Ltd. has the following capital structure as on March 31, 2019. Equity share Capital (Rs. 10/- per share) 9% Preference Shares 10% Debentures Rs. 5,00,000 2,00,000 3,00,000 The equity shares of the company are quoted at Rs. 102 and the company is expected to declare a dividend of Rs. 9/- per share for the next year. The company has registered a dividend growth rate of 5% which is expected to be maintained. Tax rate is 50%. Calculate the weighted average cost of capital (WACC) using market value weights
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