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Calculate the maket value average after tax cost of capital of mascow Moscow Co has in issue 5 0 million shares of $ 1 .
Calculate the maket value average after tax cost of capital of mascow
Moscow Co has in issue million shares of $ nominal value per share which are currently trading at $ per share. Its dividend has grown steadily from $ per share five years ago to today's $ per share, which has just been paid. Investors expect this rate of growth to continue.
Moscow Co also has in issue convertible loan notes with a total nominal value of $ These loan notes are convertible into ordinary shares of Moscow Co in four years' time. If not converted, the loan notes will be redeemed on the same future date at their nominal value of $ per loan note. Each $ loan note is currently trading at $ Investors expect Moscow Co's ordinary share price to grow at the same historical annual rate as its dividends over the next four years.
The company also has a longterm loan of $ at a fixed interest rate of per year.
The corporation tax rate is and tax is paid in the year that profits are earned.
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