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Padd properties is looking to determine its cost of capital. Information available include the following: Preference Shares: The preference shares were issued for $ 1
Padd properties is looking to determine its cost of capital. Information available include the following:
Preference Shares:
The preference shares were issued for $ with a $ dividend. The current market price is $ There were$m worth of shares originally issued.
Debt:
It has bonds on issue with a face value of $ that currently pay a quarterly coupon of These bonds currently trade at par. bonds are on issue.
Ordinary Shares:
The company also has million ordinary shares on issue with a market price of $ each.
The market risk premium is and the company has a beta of
The company just paid a dividend of cents and dividends have an expected growth of
Other Information: The tax rate is
Determine the weight of debt, ordinary equity, and preference equity to be used in the calculation of the after tax WACC.
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