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The earnings per share of a company is OMR 16. The market capitalization rate applicable to the company is 12.5%. Retained earnings can be employed

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The earnings per share of a company is OMR 16. The market capitalization rate applicable to the company is 12.5%. Retained earnings can be employed to yield a return of 10%. The company is considering a payout of 25% find the market price of the share considering Walter's Model ion OMR 108.8 OMR 121.60 OMR 115.20 OMR 100 Tulip LLC issued 10,000,9 % debentures of OMR 85 each on 1-4-2018 to be matured on 1-4-2024. The company wants to know the current cost of its existing debt and the market price of the debenture is OMR 75. The debenture is redeemed at discount rate of 5% Find the cost of existing debentures assuming 40 % tax rate. 7.12% 8.02% 7.12% 5,54% 11.05%

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