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Reference is made to the 2 0 2 2 Balance Sheet of Tram - Ropes limited . Tram - Ropes Limited Balance Sheet 2 0
Reference is made to the Balance Sheet of TramRopes limited
TramRopes Limited
Balance Sheet
Cash
Accounts Payable
Acc.
Receivable
Notes Payable
Marketable
securities
Longterm Debt
Inventories
Common stock
Fixed Assets
Preferred Stock
Total Assets
Total
Liabilities and
Equity
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.
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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