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Question NO. I Following is the Capital structure as per the Balance sheet of Swastik Rubbers Limited as on 31st March, 2016 Equity share Capital

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Question NO. I Following is the Capital structure as per the Balance sheet of Swastik Rubbers Limited as on 31st March, 2016 Equity share Capital of Rs. 10 per share 14%Preference share capital of Rs.100 each Reserves & Surplus 12.5% Debentures (of Rs.100 each ) 12% Term Loan Total Capital Rs. 10,00,000 Rs. 4,00,000 Rs. 6,00,000 Rs. 7,00,000 Rs. 5,00,000 Rs.32,00,000 Company's equity shares are quoted at Rs.104, Preference shares are valued at Rs.98 per share and Debentures are quoted at Rs.96.Preference shares have maturity period of 5 years and Debentures have maturity period of 10 years. Company has paid dividend on equity shares of Rs.5 per share which is expected to grow at 10% p.a. Tax rate is 30%. Calculate WACC

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