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Satyam industries ltd., has assets of Rs. 3,20,000. The reserve funds are Equity capital Rs. 1,80,000; General reserve Rs. 36,000 ; Debt Rs. 1,04,000. The
Satyam industries ltd., has assets of Rs. 3,20,000. The reserve funds are Equity capital Rs. 1,80,000; General reserve Rs. 36,000 ; Debt Rs. 1,04,000. The company total profits after interest and taxes for the year ended 31st march 2017 were 27,000 . It pays 10% interest on its debts and is in the 50% tax bracket. The equity share capital consists of 1800 shares of Rs. 100 each. Current market price of the share is Rs. 150 . Calculate the Weighted Average Cost of Capital using market value and book value weights
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