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Calculate Mashabas weighted average cost of capital, earnings per share (EPS) and dividend yield. full calculations required if possible please EPS= profits after taxationumber of

Calculate Mashabas weighted average cost of capital, earnings per share (EPS) and dividend yield.
full calculations required if possible please
EPS= profits after taxationumber of shares in issue.
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Case study information for Mashaba pic Mashaba plc has been listed on a stock exchange for 20 years and now has a large number of diverse shareholders none of whom exceeds a 5% stake. The Board of Directors has pursued a policy of financing all investments through debt and not by raising new equity capital. The company's loan notes are rated A and the Board is determined to maintain that investment rating. It has been advised that if seeks to borrow in excess of a further 600m it will be down graded and accordingly the maximum funds available to invest are 600m. The company has identified three indivisible projects for investment. Summarised financial statements for the last financial year for Mashaba plc Income statement *000 Revenue 1,000,000 Cost of sales (550,000) Gross profit 450,000 Overhead expenses (180.000) Operating profit 270.000 Interest payable (150,000) Profits before tax 120,000 Corporation tax (24.000) Earnings 96,000 Dividends (50,000) Retained earnings 46.000 Statement of financial position Share capital (par value 0.20) 30,000 Share premium 250,000 Retained earnings 500,000 Total equity 780,000 Non-current liabilities 10 year loan notes 5% 3.000.000 Capital employed 3.780,000 5.00 Other information Current share price Interest rate on loan notes Beta factor for Mashaba plc Equity risk premium Yield on government bonds 5.0% 1.30 2.5% 2.0% 20.0% Tax rate = V E kwacc = ke + ka(1 + ka(1 - 1) where kwacc = weighted average after-tax cost of capital ke = risk-adjusted cost of equity ka = before-tax cost of debt t = marginal tax rate E = market value of the firm's equity D = market value of the firm's debt V = market value of the firm's securities (D + E) Dividend yield = Annual dividends per share Current share price

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