Question: Do this Question on ASAP basis i'll Upvote if Correct, only Handwritten or on Document , No Excel Work Accepted Q3. How do book value

 Do this Question on ASAP basis i'll Upvote if Correct, only

Do this Question on ASAP basis i'll Upvote if Correct, only Handwritten or on Document , No Excel Work Accepted

Q3. How do book value weights differ from market value weights in measurement of cost of capital? The following is the capital structure of PQR Ltd. : Particulars Equity Share Capital (Face Value Rs.10 per share) 10% Preference Share Capital (Face Value Rs.100 per share) 12% Debentures (Face Value Rs.100 per debenture) Total Amount (Rs.) 20.00.000 4,00,000 16,00,000 40,00,000 All these securities are traded in the capital market. Recent prices are: Debentures @ Rs.108 per debenture, Preference share @ Rs.125 per share, Equity shares @ Rs.50 per share. The company expects to pay a dividend of Rs. 5 per share at the end of the year which is expected to grow at 8% p.a. The company pays income tax @ 35%. Calculate the company's cost pf capital using book value weights and market value weights

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