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Please try to give answer within 1Hr Crown Ltd has the following book value capital structure. Equity capital (shares of Rs 10 par value each)

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Please try to give answer within 1Hr

Crown Ltd has the following book value capital structure. Equity capital (shares of Rs 10 par value each) Rs 15 crore, 12% Preference capital (Rs 100 par value each) Rs 1 crore. Retained earnings Rs 20 crore, 11.5% Debentures (Rs 100 par value each) 10 crore and 11% Term loan Rs 12.5 crore. The next year expected dividend on equity is Rs 3.6 per share and has an expected growth rate of 7%. The market value is Rs 40/share. Preference stock, redeemable after 10 years is currently trading at Rs 75 per share. Debentures, trading at Rs 80 are redeemable after 6 years. Corporate tax rate is 40%. Calculate the WACC as per book value weights and market value weights

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