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my question in the picture its finance course answer fast please thank you 3. SEHAM LTD has reported return for its last fiscal year as
my question in the picture its finance course answer fast please thank you
3. SEHAM LTD has reported return for its last fiscal year as 14.5 percent. The company has outstanding debt of AED 15,000,000, Preference shares of AED 17,500,000 and Common equity valued at AED 61,500,000. The tax rate is 32.7 percent. It has paid AED 1,050,000 as interest expense on its debt, the preference shares paid a dividend of AED 1,700,000. The risk-free rate of return is 7.5 percent, while the return on the Dow Jones Industrials is 11 percent and SEHAM LTD's beta is 1.3. Required: Measure the cost of Capital (6 Marks) Write the analysis report on cost of capital and capital structure (2 Marks)Step by Step Solution
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