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Toys R us ( Pty ) Ltd is an international company with headquarters in Parsippany - Troy Hills, New Jersey, in the New York metropolitan
Toys R us Pty Ltd is an international company with headquarters in ParsippanyTroy Hills, New Jersey, in the New York metropolitan area. Its an American toy, clothing, and baby product retailer owned by Tru Kids doing business as Tru Kids Brands and various others. The business has expanded into third world countries starting with a branch in Cape Town, South Africa. The business has a capital structure of R ordinary shares, market price R Their preference shares are R preference shares, market price R They have a received a bank loan from HSBC Bank of R Debentures at par value market price Rissued at R
In order to equalise the tax effect, the debenture and bank loan interest weighting is reduced by multiplying it by minus the given corporate tax rate
The current and expected future rate of ordinary share dividends is
REQUIRED:
a Calculate the overall market value showing the proportional breakdown
b Calculate overall cost using the Dividend Discount Method
c Calculate the Weighted Average Cost of Capital WACC
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