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Reference is made to the 2 0 2 2 Balance Sheet of Tram - Ropes limited . Additional Information: i . The Long - Term
Reference is made to the Balance Sheet of TramRopes limited
Additional Information:
i The LongTerm debt consists of annual coupon bonds, with
years to maturity and are currently selling for of
par.
ii The companys common shares which have a book value of $
per share are currently selling at $ per share.
PREPARED BY THE CI MGMT
iii. Preferred shares have a book value of $ per share. These
shares are currently selling at $ per share and pays
dividends of per annum on book value.
iv The dividend growth rate is expected to be and dividend
for is projected to be $ per share.
v The Companys Tax rate is
Required:
Determine the following for TramRopes Limited:
A Total Market value of the firms capital structure
marks
B Aftertax Cost of Debt
marks
C Cost of Common Stock
marks
D Cost of Preferred Stock
mark
E WACC marks
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