The capital structure of XYZ Ltd.in bookvalue term is as follows:- Equity share(30 million share,Rs 10 par)

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The capital structure of XYZ Ltd.in bookvalue term is as follows:- Equity share(30 million share,Rs 10 par) Rs 300 million Preference capital,12%(600,000share,Rs100 par) Rs 50 million Debentures 14%(1,300,000 debenture,Rs100 par) Rs130 million Term loan,14% Rs 90 million Total Rs 580 million

The next expected dividend per share is Rs 3.00.The dividend per share is expected to grow at the rate of 13%.The market price per share is Rs 60.00.Preference stock,redeemable after 10 years,is currently selling for Rs 90 per share.Debentures,redeemable after 5 years,are selling for Rs 100 per debenture.The tax rate for the company is 40%.Calculate the weighted average cost of capital based on market value.

Posted Date: May 19, 2024 12:14 AM

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The capital structure of XYZ Ltd.in bookvalue term is as follows:- Equity share(30 million share,Rs 10 par)

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