Question
A co has the following capital stucture Equity capital(100000 shares of rs.10each) 10 Reserves and surplus(retained earning) 8 12%debentures(5000 members of rupees 100 each) 5
A co has the following capital stucture
Equity capital(100000 shares of rs.10each) 10
Reserves and surplus(retained earning) 8
12%debentures(5000 members of rupees 100 each) 5
Total. 23
If the co is paying divident at 27%,calculate the cost equity and WACC, based on book values.
If the market value of equity share is rs 15 each and if the debenture are quoted at rs 95each. What is the WACC, based on market values
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
