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Q . 2 . XYZ Ltd has the following book value capital structure ( Rs Crore ) table [ [ Equity capital ( Rs
Q XYZ Ltd has the following book value capital structure Rs Crore
tableEquity capital Rs each, fully paid upat parRs preference capital Rs each, fully paid upat parRetained earnings, Debenture Rs each Term loan,
The next expected dividend on equity shares per share is Rs ; the dividend per share is expected to grow at the rate of percent. The market price per share is Rs Preference stock, redeemable after years, is currently selling at Rs per share.
Debentures redeemable after years, are selling at Rs per debenture.
The income tax rate for the company is percent.
Calculate the weighted average cost of capital by using the market value weights.
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