Scrial No. of Questi 1. The capital structure of Apollo Ltd, is of the following order as on December 31, 2017 on Equity shares (6, 50,000 of Rs. 10 cach) 10% Preference Shares (15000 of Rs. 100 each) 13% Non-convertible debentures (20,000 of Rs 100 each) Rs. 65, 00,000 15, 00,000 20, 00,000 1, 00, 00,000 The Equity Shares of the company are presently selling at Rs. 58 per share. The company is expected to pay a dividend of Rs. 3 per share in 2018 and this is likely to grow at 8% per year for infinity. The corporation tax may be assumed to be 50%. You are required to: (G). Calculate the weighted average cost of capital on the basis of the existing capitalization scheme Scanned hy CamScanner (ii), Calculate the revised overall cost of capital, if additional amount of Rs. 25,00,000 from IDBI at expected to raise the dividend by Rs. 4 per share without affecting the growth rate the increased financial leverage is likely to reduce the market price of the sh the management decid 15%. The new investment is to raw 45