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Please help me . Please help me .. please please Question 2 The following is an extract from the balance sheet of LEX Bhd at
Please help me . Please help me .. please please
Question 2 The following is an extract from the balance sheet of LEX Bhd at 31 March 2005: RM'000 Ordinary shares of RM0.50 each 2,600 Reserves 2,425 9% preference shares of RM1 each 2,250 14% debentures 2,500 Total long term funds 9,775 The ordinary shares are quoted at 80 sen each. Assume that the market estimate of the next ordinary dividend is 4 sen, growing thereafter at 12% per annum indefinitely. Both the preference shares and debentures are irredeemable. The preference shares are quoted at 72 sen each and the debentures are quoted at par. Income tax is 33%. Required: a) Use the relevant data above to estimate the company's weighted average cost of capital (WACC), using the respective market values as weighting factorsStep by Step Solution
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