Capital structure - case study, finance, Other Engineering

Assignment Help:
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.


Related Discussions:- Capital structure - case study, finance

Explain the concept of postmodernism in detail, Question 1 Write a long no...

Question 1 Write a long note on Professional Cultures in a ‘Golden Age' Question 2 Write a long note on the Global and Local Interrelationship Question 3 Write a long no

ALGORITHM, write an algorithm to find a number that multiplies your name 10...

write an algorithm to find a number that multiplies your name 10 times

Steamtables, How to draw diagrams for Rankine cycle

How to draw diagrams for Rankine cycle

Telecom engg, the project those see in the matlab project which in the voic...

the project those see in the matlab project which in the voice of different birds

Homework, What are the no-arbitrage lower bound, and the no-arbitrage upper...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread C(k1) - C(k2) ?

Case study, dhpl is the firm situated in faridabad,its ending year on 31st ...

dhpl is the firm situated in faridabad,its ending year on 31st march 2009 ,1000million asset base rs.650 million & the net profit of the company was 76 milloin the managmnt of the

Time-flow diagram, One approach of an intersection with fixed time traffic ...

One approach of an intersection with fixed time traffic signals, vehicles arrive at 500 veh/h on the approach. The cycle time of the intersection is 80 seconds, and the effective g

Manufacturing process, why is it necessary for all engieers to about manufa...

why is it necessary for all engieers to about manufacturing process

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd