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You are provided with the following information regarding the capital structure of ABC LBa: a . Dets - Cospany ksost 1 0 0 0 5
You are provided with the following information regarding the capital structure of ABC LBa:
a DetsCospany ksost tonds materife in years with a ecspon rate of
Fase value Rs the firme paid Rs io in investment banker for their
underwriting services for this bost debt issue.
b Preferred staes shares of per ceat ie the dividend rate preferred stock
with a current market price of and havins a por value ofRs The company
underwiting servikes for this issue.
c Commoe stoek The fers's moet necent eamiags availahle to the exiding comnon
is changed is per cent is the cemeat year from per sent hisicrically. The
in the morket. The floedation cost heamed by the firn sor the stock bsaince is T per
cem.
Further details iare:
per cent, and the historical average of the risk free rale is per cert. It is expoctred that the
cost af equity'
Considef the marker value for arriving at the weight of common sack and use the book value for ah
vilue of deth and preferned suocls as prr the for face values.
Your reppene to the abont question will be evaleated basod on the following sequense:
b Make the below takle in the ansmersleet and pepalute the reguired fieks.
For part b below is the table yoe nod is fill nequied Replicate it is yoer anewer shect.
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