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plz send the answer fast Simon Limited is a company which produces very innovative products for women. The market price of the company share is
plz send the answer fast
Simon Limited is a company which produces very innovative products for women. The market price of the company share is Rs. 110 and expect that the dividend of Rs.10 per share will be declared in the year 2020 the different growth rate is 6%. Equity share capital is 10 lacs 10000 shares of rupees hundred each. The company has issued 10% preference shares of rupees hundred each which is adding to Rs.4 loos of investment in preference shares. The company has also issued debentures which pay a coupon rate of 12% per annum the book value adding up to Rs.6 lakhs. At the company as a tax bracket of 30%, determine the weighted average cost of capital for Simon Limited B. Assuming that in order to fund the expansion pion the company intend to borrow a lund of 10 lacs with the interest rate of 14%, what will be the company's revised weighted average cost of capital. The financing decision is expected to increase the dividend per share from Rs 10 to Rs.12 per share however the market price of equity share is expected to decline from rupees 110 to Rs.105 per shareStep by Step Solution
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