Mumbai Ltd. expected to pay dividends of * 2 for the next year. As the company is a market leader with a good future, the dividend is likely to grow by 5% every year. The equity shares are now traded at 80 per share in the stock exchange. The ta rate applicable to the company is 50%. The capital structure of the company also contains debt on which interest is payable i 14%. The capital structure has a ratio of Equity & Debt 80.20, WACC -7