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PLEASE PROVIDE CLEAR FORMULAR AND CALCULATION A limited capital is composed of 1,000,000 ordinary shares of Ksh 10 each, 2,000,000 preference shares of Ksh200 each,

image text in transcribedPLEASE PROVIDE CLEAR FORMULAR AND CALCULATION

A limited capital is composed of 1,000,000 ordinary shares of Ksh 10 each, 2,000,000 preference shares of Ksh200 each, Ksh 10,000,000 retained earnings, 14% Debentures worth Ksh4,000.000 and 16% Bank loan worth 6,000,000 The company's ordinary shares are currently trading Ksh48 per share The company paid a dividend of Ksh4 per share and this is expected to grow at a rate of 12% p a The preference shares have a constant divided rate of 14% pa If the company is within 40% tax bracket, you are required to Determine the value of each security Determine Weighted Average Cost of capital of the company

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