corporate finance

Nthanda PLC is an International food retailing company financed by both debt and equity capital. The total market value of company's equity is K26.4 million ex-dividends, currently quoted on LUSE K120 cum-Div. The company has recently paid a total dividend of K4 million to its shareholders. This is in line with the company's policy of increasing dividends by 5% per annum. Nthanda has an equity beta value of 1.86. The yield on short-term government debt is 7% and equity risk premium is 7.4%. Nthanda PLC has K50, 000 9% irredeemable preference shares in issue with a nominal value of each share of Kl. They are currently quoted at 72 ngwee ex-dividend in the market. In addition, the company has issued K 12.6 million of 8% irredeemable bonds. They are currently quoted at K80, ex interest. Corporate tax currently stands at 35%. Required: B. Calculate the WACC for Nthanda PLC Using i. Book Values ( 4 Marks) Market Values (3 Marks) iii. Give three examples of Corporate Financial decisions and briefly explain them. (3 Marks) Nthanda PLC is an International food retailing company financed by both debt and equity capital. The total market value of company's equity is K26.4 million ex-dividends, currently quoted on LUSE K120 cum-Div. The company has recently paid a total dividend of K4 million to its shareholders. This is in line with the company's policy of increasing dividends by 5% per annum. Nthanda has an equity beta value of 1.86. The yield on short-term government debt is 7% and equity risk premium is 7.4%. Nthanda PLC has K50, 000 9% irredeemable preference shares in issue with a nominal value of each share of Kl. They are currently quoted at 72 ngwee ex-dividend in the market. In addition, the company has issued K 12.6 million of 8% irredeemable bonds. They are currently quoted at K80, ex interest. Corporate tax currently stands at 35%. Required: B. Calculate the WACC for Nthanda PLC Using i. Book Values ( 4 Marks) Market Values (3 Marks) iii. Give three examples of Corporate Financial decisions and briefly explain them