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

Comparison of 2-stroke and 4-stroke engines, COMPARISON OF 2-STROKE AND 4-S...

COMPARISON OF 2-STROKE AND 4-STROKE ENGINES: Two-stroke engine possesses the following advantages over the four stroke type: 1.      Because of its valueless construction, the

Line the crown of the tunnel, A 10m diameter circular tunnel is to be excav...

A 10m diameter circular tunnel is to be excavated in a jointed ground.  The joint sets spaced at 6m are dipping towards the West at 50°.  A horizontal circular tunnel is to be cons

TANGENT GALVANOMETER, WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH I...

WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH INCREASING OR DECREASING CURRENT?

Simulation, A system is a walk-in medical clinic; a simulation is used to d...

A system is a walk-in medical clinic; a simulation is used to determine staffing levels. Under what circumstances would it be appropriate to use a terminating simulation or a stead

Application of Mechatronics Engineering, This is an individual task in the ...

This is an individual task in the form of an essay of between 900 and 1300 words. Illustrative material such as pictures may be included in addition to the text.

Assignment help, need help with energy engineering assignment,environment t...

need help with energy engineering assignment,environment technology assignment,mechanical assignment

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

Found ash content, determine the ash content in given sample

determine the ash content in given sample

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