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The following information has been extracted from the financial statements of Reliance International Limited for the year ended 3 1 December 2 0 2 2
The following information has been extracted from the financial statements of Reliance International Limited for the year ended December : Equity shares of $ each : $ Preference shares of $ each : $ Redeemable Debentures of $ each : $ The current market value of an equity share is $ before paying the equity dividend. The market value of the redeemable debenture which is redeemable at premium in years is $ per debenture. The preference shares current market value is $ per share. The rate of growth of this company is expected to be every year and the current year equity dividend will be $ which is due to be paid. The preference dividend and debenture interest have been already paid. The corporate tax will be Required: a Calculate the Cost of Equity b Calculate the Cost of Preference Shares c Calculate the Cost of Debt Redeemable Debentures d Calculate the Weighted Average Cost of Capital WACC Clear and accurate answers needed with stepbystep explanation, please
The following information has been extracted from the financial statements of Reliance International Limited for the year ended December :
Equity shares of $ each : $
Preference shares of $ each : $
Redeemable Debentures of $ each : $
The current market value of an equity share is $ before paying the equity dividend. The market value of the redeemable debenture which is redeemable at premium in years is $ per debenture. The preference shares current market value is $ per share.
The rate of growth of this company is expected to be every year and the current year equity dividend will be $ which is due to be paid. The preference dividend and debenture interest have been already paid. The corporate tax will be
Required:
a Calculate the Cost of Equity
b Calculate the Cost of Preference Shares
c Calculate the Cost of Debt Redeemable Debentures
d Calculate the Weighted Average Cost of Capital WACC
Clear and accurate answers needed with stepbystep explanation, please
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