The following is the capital structure of Alpha Limited as on 31st March 2020 Equity Shares : 10000 shares ( of Rs 100 each) Rs 10,00,000 12% Preference Shares ( of Rs 100 each) Rs 10,00,000 10% Debentures Rs 12,00,000

The market price of the companys share is Rs 120 and it is expected that a dividend of Rs 10 per share would be declared by the company . The dividend growth rate is 5%. If the tax rate is 30%, calculate Weighted Average Cost of Capital(WACC) by book value & market value method. Assume market value of Preference shares and Debentures to be same as the book value. Comment on the results. (10 Marks)