ABC Ltd. has the following book value capital structure as on March, 31, 2024.
Equity share capital (2,00,000 shares)
10% preference shares
12% Debentures
The equity share of the company sells at Rs. 30. It is expected that the company will pay next year a dividend of Rs. 3 per equity share which is expected to grow at 5% p.a. forever, Assume 40% corporate tax rates.
Based on the above information calculate.
Alright — let’s go step-by-step and calculate Cost of Capital manually from the given data. --- ## Step 1: Given Data Capital Structure (Book Value) | Source of Capital | Amount (Rs.) | | -------------------------------------- | --------------- | | Equity Share Capital (2,00,000 shares) | 60,00,000 | | 10% Preference Shares | 10,00,000 | | 12% Debentures | 30,00,000 | | Total _________ ________ _____ ________ ___ ___ _________ _________ _____ ____ _____ __________.
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ABC Ltd. has the following book value capital structure as on March, 31, 2024.
Equity share capital (2,00,000 shares)
10% preference shares
12% Debentures
The equity share of the company sells at Rs. 30. It is expected that the company will pay next year a dividend of Rs. 3 per equity share which is expected to grow at 5% p.a. forever, Assume 40% corporate tax rates.
Based on the above information calculate.
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