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Chis is a subjective question, hence you have to write your answer in the Text-Field given below. Answer the followings a. An ordinary share selling
Chis is a subjective question, hence you have to write your answer in the Text-Field given below. Answer the followings a. An ordinary share selling at a current market price of Rs. 120 , and paying a current dividend (D0) of Rs. 9 per share, which is expected to grow at a rate of 8%. Compute after-tax cost of capital assuming 40% tax rate. [5 Marks] b. A 10-year 8% Rs. 1,000 bond is issued at Rs. 950 , and will be redeemed at Rs. 1,050 . Compute after-tax cost of capital assuming 40% tax rate. [5 Marks]
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