Question: please do fast You are required to determine the weighted average cost of capital of Blue Bell Itd using ( Book valuc weights and (ii)

please do fast please do fast You are required to determine the weighted average cost

You are required to determine the weighted average cost of capital of Blue Bell Itd using ( Book valuc weights and (ii) Market value weights. The following information is available for your perusal. The Blue Bell Ltd present book value capital structure is as follows: Debenture Preference Shares Equity Shares (8.'100 per debenture) (8, 100 per share) (8, 10 per Share) , '15,00,000 8,'5,00,000 8, 20,00.000 All these securities are traded in the capital markets. Recent prices are debenture @a,'120. preference share @ 8.'130 and equity shares @,'28. Anticipated external financing opportunities are: (i). a, '100 per debenture redeemable at par, 20 years maturity, 8% coupon rate, 4% flotation cost, sale price a, '100 (11). &, '100 preference share redeemable at par, 15-year maturity, 10% dividend rate, 5% flotation costs, sale price &, 100 (iii). Equity shares 8, '2 per share flotation costs, sale price &,'28 In addition, the dividend expected on the equity share at the end of the year a'2 per share; the anticipated growth rate in dividend is 7% and the company has the practice of paying all its earnings in the form of dividends. The corporate tax rate is 50%

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