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This quiz is based on the following information: Calculate the cost of capital for company with the following capital structure >1,500,000 ordinary shares, market price
This quiz is based on the following information: Calculate the cost of capital for company with the following capital structure >1,500,000 ordinary shares, market price R4 per share. Last dividend was 93c per share. Dividend growth was 14% for past 5 years >1,000,000 12%, R1 preference shares with market value of R3 per share >R1,000,000 9% debenture due in 7 year and the current YTM is 10% >R1,300,000 15% bank loan, due in June 2024 >Company tax rate is 30%
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