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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
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