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

#title.electronic devices., Advantages and dis advantages of a diode in ser...

Advantages and dis advantages of a diode in series /shunt

Dsp, h(t) is an analog IIR filter, with the poles lambda_1 = -1, lambda_2 =...

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

Full-authority digital electronic control, Full-authority digital electroni...

Full-authority digital electronic control: The supervisory control was a step toward the full-authority, fully redundant EEC. It controls all engine functions and eliminates th

Crystal imperfection, Q.   What is crystal imperfection? Briefly discuss ...

Q.   What is crystal imperfection? Briefly discuss all types of point defects in crystals. Ans. The various type of crystal imperfection are as follows: (1)   Point de

Resistive transducers, Resistive transducers Linear or rotary potentiom...

Resistive transducers Linear or rotary potentiometers can be adapted to measure displacement, possibly through mechanical gearing and linkages. The displacement is registered a

Why is earth geologically active, Expertsmind.com brings you unique soluti...

Expertsmind.com brings you unique solution in physics Why is earth geologically active?        1- Internal Structure: -               -Core : The highest densi

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