Debentures

$1,50,00,000$

$1,45,00,000$

debentures of

Rs$.100$ each$)$

The expected dividend per share is Rs$.1\mathrm{.}40$ which is expected to grow at a rate of $8\%.$ Preference shares

are redeemable after $5$ years, whereas debentures are redeemable after $6$ years. The tax rate for the

company is $50\%.$ Calculate the Page $1^1$ the existing capital struture tsing market value proportions as

weights.