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Debentures 1 , 5 0 , 0 0 , 0 0 0 1 , 4 5 , 0 0 , 0 0 0 debentures of

Debentures
1,50,00,000
1,45,00,000
debentures of
Rs.100 each)
The expected dividend per share is Rs.1.40 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 11 the existing capital struture tsing market value proportions as
weights.
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