The following is the capital structure of Alpha Limited as on 31st March 2020
Equity Shares : 10000 shares ( of Rs 100 each) Rs 10,00,000
12% Preference Shares ( of Rs 100 each) Rs 10,00,000
10% Debentures Rs 12,00,000
The market price of the company’s share is Rs 120 and it is expected that a dividend of Rs 10 per share would be declared by the company . The dividend growth rate is 5%. If the tax rate is 30%, calculate Weighted Average Cost of Capital(WACC) by book value & market value method. Assume market value of Preference shares and Debentures to be same as the book value. Comment on the results.
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Weighted Average Cost of Capital(WACC) by book value & market value method
Replies (2)
Sudhangsu these are all questions of Management of Advanced Accountancy.(MAC)
So I must say that you must know the formulae
Weighted Average Cost of Capital.
So I must say that you must know the formulae
Weighted Average Cost of Capital.
You tell me the ans and I tell you it's correct or not
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