Question 32 Not yet answered Marked out of 1.00 Flag question Apal LLC is a company formed in the year 2002 and listed on the Muscat Securities Exchange. The company has primarily engaged in the manufacture of Milk Chocolates. Recently, the company has expanded its operation by entering in to cool drinks business. For that reason, the company has decided to start two more factories in Oman and the Senior manager (finance) Mr. Mohammed Alim has asked to identify the possible sources of funds for the same. As per the estimate submitted by SMA team (Strategic Management Accounting team), the company requires 200,000 OMR to proceed with the proposed investments. By considering the facts and figures given below you are asked to evaluate the proposed capital structure by answering the given questions Abstract of the Capital structure developed by Mr. Mohammed Abu, CPA Source of capital Amount in OMR Equity share capital 5000 shares at OMR 10 each) 100,000 Reserve and surplus 20,0000 13% preference shares 40,000 10 % debentures 40,000 Total fund required 200,0000 Additional Information The market price of equity share is estimated as OMR 60 and it is expected that the company will pay a dividend of OMR 6 per share. The estimated growth rate is 5 % and the Income tax rate is 50%. Question Calculate the overall cost of capital from the above given data