Customer Service Chat
Get quote & make Payment
WACC., Finance Basics
The following is the existing capital structure of Company XYZ Ltd.
Ordinary shares at Shs.10 par 1,000,000
12% preference shares Shs.10 par 400,000
16% loan Shs.100 par 300,000
Total capital employed Shs. 2,500,000
The company’s ordinary shares have a dividend cover of 3 times and pays a dividend of 10% on its ordinary share capital.
Ordinary shares sells at Shs.18
Preference shares sell at Shs.15
Debentures are selling at par. The tax rate is 30%
a)Growth in Equity. (7 marks)
b)W.A.C.C. (8 marks)
Posted Date: 3/3/2013 7:40:14 AM | Location : Kenya
Ask an Expert
WACC., Assignment Help, Ask Question on WACC., Get Answer, Expert's Help, WACC. Discussions
Write discussion on WACC.
Your posts are moderated
Write your message here..
Question 7.1, Assume the managers of Fort Winston Hospital are setting the ...
Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates. Variable costs $ 5.00 Annual fixed c
Valuation of bonds and debentures, Valuation of Bonds and Debentures I...
Valuation of Bonds and Debentures It will depend on expected cash flows consisting of annual interest in additional the principal amount to be obtained at maturity. The suita
Stewardship accounting, Stewardship Accounting Shareholders contribute...
Stewardship Accounting Shareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year render an explanation on the a
#lpp, Solve the following Linear Programming Problem using Simple method. M...
Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0
Calculate current ratio, The average of the industry current ratio was 1.86...
The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, thei
BUSINESS OWNER, DO YOU HAVE A SAMPLE BALANCE SHEET
DO YOU HAVE A SAMPLE BALANCE SHEET
Example of npv method, Example of NPV Method Resolution limited inte...
Example of NPV Method Resolution limited intends to purchase a machine worth Shs.1, 500,000 that will have a residue value Shs.200,000 after 5 years helpful life. The saving
Discounted cash flow rate of return of a project, Given the following Prese...
Given the following Present Value Plot for Projects A and B, which are mutually exclusive projects, answer the following questions: (i) What is the DCFROR for Project A? fo
Define the term placement - methods of floating new issues, Define the term...
Define the term Placement - Methods of Floating New Issues Under this method, issue houses or brokers purchase the securities outright with the intention of placing them wi
Financial markets, what are the main function of the derivative market
what are the main function of the derivative market
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.