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The following is an extract from the Statement of Financial Position of Adaraniwon Plc as at 3 0 June, 2 0 2 1 N 0
The following is an extract from the Statement of Financial Position of Adaraniwon Plc as at June,
N
Ordinary share of K each
Reserves
Preference
debenture
The ordinary shares are quoted at k Assume that the market value of the next ordinary dividend is k growing thereafter at per annum indefinitely. The preference shares which are irredeemable are quoted at K and the debentures are quoted at per. Corporation tax is
Required:
Use the relevant data above to estimate the companys weighted average cost of capital WACC ie the return required by the providers of three typed of capital, using the respective market values as weighting factors.
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