Customer Service Chat
Get quote & make Payment
WACC, Financial Management
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: 3/22/2013 12:55:38 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..
CAPM, Techiniques of capm Effects of capm
Techiniques of capm Effects of capm
Company financial performance, In the telecom industry of the Australia, th...
In the telecom industry of the Australia, these are some most important organizations such Vodafone Austrelia, TransACT Capital Communications, Optus, and Telstra. Vodafone A
London stock exchange, London Stock Exchange (LSE) The origin of the Lo...
London Stock Exchange (LSE) The origin of the London Stock Exchange goes back to the coffee houses of 17th century. London, where people willing to invest or raise money, bough
Explain the significant feature of the wealth maximisation, Explain the sig...
Explain the significant feature of the wealth maximisation The significant feature of the wealth maximisation criterion is that it considers is that it considers both the quali
Cost of preference equity-irr , 1. Find out the present value of Rs. 10,00...
1. Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%. 2. A Firm can invest Rs. 10,000 in a project with a life of three years.
Option adjusted spread, The formula explained in the above paragraph ...
The formula explained in the above paragraph enables the investor to compute the value of a bond with an embedded option as the difference between the value of an
What is the rationale of the double-play strategy, Q. What is the rationale...
Q. What is the rationale of the double-play strategy? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver
Resource acquisition and resource planning, 1. List five different types of...
1. List five different types of resource that a company might consider hiring or leasing. Explain why the might choose these option instead of outright purchase 2. List three di
Minimum bonus and maximum bonus, Question 1 Sections 42 to 50 of the Act d...
Question 1 Sections 42 to 50 of the Act deal with provisions pertaining to welfare of workers. State a few welfare measures that you would suggest in factories. List the welfare m
Explain the powers and functions of sebi, Question 1 What is liquidity ris...
Question 1 What is liquidity risk? What are the causes for liquidity risk? Question 2 Explain the powers and functions of SEBI Question 3 Discuss the various categories
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
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Terms & Conditions
Copyright by ExpertsMind IT Educational Pvt. Ltd.