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The following information about BLUEDOT Pty Ltd is available:
Extract from the statement of financial position:
Debentures at per annum
R
Nondistributable reserves
Longterm loan
Retained income
Ordinary share capital
R
R
R
R
Additional information:
The debentures have a face value of R and are redeemable after eight years at face value.
The current dividend paid to shareholders was R and the expected growth rate is per annum.
The ordinary shares have a nominal value of R per share. The current market value per share is R
The current market return for similar debentures with a life of eight years is beforetax.
The agreement of the longterm loan provides that interest is charged at per annum. The current JIBAR rate for similar loans is aftertax at the tax rate for BLUEDOT Pty Ltd
The current tax rate for companies is
Calculate the market value of BLUEDOT Pty Ltds equity?
a R
b R
c R
d R
Select one:
a
R
b
R
c
R
d
R
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Not yet answered
Marked out of
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Question text
The following information about BLUEDOT Pty Ltd is available:
Extract from the statement of financial position:
Debentures at per annum
R
Nondistributable reserves
Longterm loan
Retained income
Ordinary share capital
R
R
R
R
Additional information:
The debentures have a face value of R and are redeemable after eight years at face value.
The current dividend paid to shareholders was R and the expected growth rate is per annum.
The ordinary shares have a nominal value of R per share. The current market value per share is R
The current market return for similar debentures with a life of eight years is beforetax.
The agreement of the longterm loan provides that interest is charged at per annum. The current JIBAR rate for similar loans is aftertax at the tax rate for BLUEDOT Pty Ltd
The current tax rate for companies is
Calculate the aftertax cost of BLUEDOT Pty Ltds debentures? Set your calculator at four decimals and round your final answer to two decimal places.
a
b
c
d
Select one:
a
b
c
d
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