Capital structure - case study, finance, Other Engineering

The following is the capital structure of X ltd on 31st Dec2003

Rs in million

Equity capital (paid up) 563.50

Reserves and surplus 485.66

10% Irredeemable preference shares 56.00

10% Redeemable preference shares 28.18

15% Term loans 377.71

---------------------------------------
Total 1511.05


The share of the company is currently selling for Rs 36. The expected dividend next year is Rs 3.60 per share anticipated to be growing at 8% indefinitely. The redeemable preference shares were issued on 1 January 1997 with twelve-year maturity period. A similar issue today will be at Rs 93. The market price of 10% irredeemable preference share is Rs 81.81. The company had raised the term loan from IDBI in 1993. A similar loan will cost 10% today.

Assume an average tax rate of 35 percent. Calculate the weights average cost of capital for the company using book-value weights.

Posted Date: 3/11/2012 11:56:27 PM | Location : United States







Related Discussions:- Capital structure - case study, finance, Assignment Help, Ask Question on Capital structure - case study, finance, Get Answer, Expert's Help, Capital structure - case study, finance Discussions

Write discussion on Capital structure - case study, finance
Your posts are moderated
Related Questions
Flight dynmaics The study of aircraft- Stability & Trim (Equilibrium)- Motion due to • Control inputs • Atmospheric Disturbances • We will consider for the most part f

To achieve successful results in powder metallurgy the metallic powder must be thoroughly homogenized. The term blending and mixing are both used in this content. Blending refers t

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread

3. Design and draw a circuit using the cascade system to operate two cylinders (A and B) which, on the operation of a start valve, produces the sequence A – B + B – A+. The cylinde

Sprag Clutch : Sprag clutches are used to provide the disconnect mechanism between the starter motor and the engine. The clutch will transmit drive from the starter motor, but


Direct from engine compressor: A Load valve is switched on from the flightdeck, power for the switch is available once the APU has achieved 95% + 3 sec. This energises the swit

Question: a) E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive commun

h(t) is an analog IIR filter, with the poles lambda_1 = -1, lambda_2 = -1+i, lambda_3 = -1-i and no zeros. let h[n] be a digital IIR filter with poles which defined by e^lambda_i a

what is difference between lagrangian aparoach and eulerian approach?