For years General Electric Limited was admired and popular company in South Africa. General Electric Limited main trade of business is selling of electric appliances to the general public. For the past years stock prices was impressive and maintaining shareholders satisfaction. Therefore, shareholders were always prepared to invest in the company. During 2021 and 2022 financial year, stock price of the company decreased due to volatile global markets. Shareholding of the company is not impressive as previous years. Dividends paid to shareholders was reduced during the 2021 and 2022 financial year. The chief executive officers, Mr. J Welch is under tremendous pressure as funding for company is decreasing and investors are demanding higher future returns. He further mentioned, 'a review of expected future returns should be analysed'. This is important taking into account the poor financial distress and economic crisis affecting Mr. J Welch added, the 2021 and 2022 financial year cost of capital structure of the company was not analysed accurately resulting to poor decision on the expected returns. Therefore, he had suggested to analysis the cost of capital structure of the company and expected returns. Presented below is information on the cost of capital structure of the company for the financial year 30 June 2022 and the rate of returns. Note one: Ordinary shares capital Note two: Preference shares The company had issued 750000 preference shareholders. The current value of these shares is R2 040000 and dividend is paid at R0.30c per share. These preference shares dividends are cumulative. Note three: Non-redeemable debenture 15% non-redeemable debentures have a face value of R100. The current value of the debentures is R67. Total issued of non-redeemable debenture is 30000 . Note four: Bank loan The company have a loan with Standard bank. The normal interest rate is 8.68% per annum. The current outstanding balance is R5600000. The information below demonstrate rate of returns for five years. The probabilities is due to the financial economic volatile market conditions: Additional Information - Mr. J Welch decided the average expected rate of return will be used to determine the rate of return for shareholders. - The standard deviation is estimated to be 8.5%. For years General Electric Limited was admired and popular company in South Africa. General Electric Limited main trade of business is selling of electric appliances to the general public. For the past years stock prices was impressive and maintaining shareholders satisfaction. Therefore, shareholders were always prepared to invest in the company. During 2021 and 2022 financial year, stock price of the company decreased due to volatile global markets. Shareholding of the company is not impressive as previous years. Dividends paid to shareholders was reduced during the 2021 and 2022 financial year. The chief executive officers, Mr. J Welch is under tremendous pressure as funding for company is decreasing and investors are demanding higher future returns. He further mentioned, 'a review of expected future returns should be analysed'. This is important taking into account the poor financial distress and economic crisis affecting Mr. J Welch added, the 2021 and 2022 financial year cost of capital structure of the company was not analysed accurately resulting to poor decision on the expected returns. Therefore, he had suggested to analysis the cost of capital structure of the company and expected returns. Presented below is information on the cost of capital structure of the company for the financial year 30 June 2022 and the rate of returns. Note one: Ordinary shares capital Note two: Preference shares The company had issued 750000 preference shareholders. The current value of these shares is R2 040000 and dividend is paid at R0.30c per share. These preference shares dividends are cumulative. Note three: Non-redeemable debenture 15% non-redeemable debentures have a face value of R100. The current value of the debentures is R67. Total issued of non-redeemable debenture is 30000 . Note four: Bank loan The company have a loan with Standard bank. The normal interest rate is 8.68% per annum. The current outstanding balance is R5600000. The information below demonstrate rate of returns for five years. The probabilities is due to the financial economic volatile market conditions: Additional Information - Mr. J Welch decided the average expected rate of return will be used to determine the rate of return for shareholders. - The standard deviation is estimated to be 8.5%