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Cost of capital

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 November 2012 Hi,

Please help me to calculate cost of Capital in case if X ltd. has issued 200000 shares @10/- & Loans from banks amounting Rs. 2 crores @10% .a. intt. ??
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Amol S Joglekar

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Amol S Joglekar (Expert)
26 November 2012 you need to estimate "expected rate of return (dividend)", then you can work out the combined cost of capital. 30% would be a fair rate for dividend.
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