Answered step by step
Verified Expert Solution
Question
1 Approved Answer
cancel this question completely, refund this question please , thank you do not answer... delete this question. do not answer it at all. refund this
cancel this question completely, refund this question please , thank you do not answer...
delete this question. do not answer it at all. refund this question.
Basics Citat Gottlich: Uhalense 101 Stimulus Investment Limited has the following capital structure Equity and Reserves N$ Not yet answered 1 2 NS Marked out of 15.00 Ordinary shares k92 000 000 @ N$0.25) 23 000 000 Finish attempt Reserves Flag question 247 000 000 270 000 000 Non-current liabilities Time left 0:59:26 5% Preference shares 5 000 000 Debenture 6% (110 000 @ N$ 100) 11 000 000 16 000 000 286 000 000 The ordinary shares of Stimulus Investment Limited are currently trading at N$426 per share and have a nominal value of N$0.25 per share. Ordinary dividends are expected to grow in the future by 4% per year and a dividend of NS0.30 has just been paid. The 5% preference shares have a market value of N$0.56 per share and a nominal value of N$1.00 per share. The shares are irredeemable The 6% debenture of Stimulus Investment Limited are currently trading at N$95.45 per debenture and will be redeemed at their nominal value of N$100 per debenture in five years time. Stimulus Investment Limited pays corporate tax at a rate of 30% MARKS Activate REQUIRED: 2.1. Calculate the after-tax weighted average cost of capital of Stimulus Investment Limited on a market value basis (15) Type here to search O W PE Basics Citat Gottlich: Uhalense 101 Stimulus Investment Limited has the following capital structure Equity and Reserves N$ Not yet answered 1 2 NS Marked out of 15.00 Ordinary shares k92 000 000 @ N$0.25) 23 000 000 Finish attempt Reserves Flag question 247 000 000 270 000 000 Non-current liabilities Time left 0:59:26 5% Preference shares 5 000 000 Debenture 6% (110 000 @ N$ 100) 11 000 000 16 000 000 286 000 000 The ordinary shares of Stimulus Investment Limited are currently trading at N$426 per share and have a nominal value of N$0.25 per share. Ordinary dividends are expected to grow in the future by 4% per year and a dividend of NS0.30 has just been paid. The 5% preference shares have a market value of N$0.56 per share and a nominal value of N$1.00 per share. The shares are irredeemable The 6% debenture of Stimulus Investment Limited are currently trading at N$95.45 per debenture and will be redeemed at their nominal value of N$100 per debenture in five years time. Stimulus Investment Limited pays corporate tax at a rate of 30% MARKS Activate REQUIRED: 2.1. Calculate the after-tax weighted average cost of capital of Stimulus Investment Limited on a market value basis (15) Type here to search O W PEStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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