capital structure of X Ltd. as on 31st Dec 2003, Other Engineering

Assignment Help:
The following is the capital structure of X Ltd. as on 31st Dec 2003

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 1,511.05
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 per cent. Calculate the weights average cost of capital for the company using book- value weights.

Related Discussions:- capital structure of X Ltd. as on 31st Dec 2003

Roof bolt support performance, A certain coal mine has weak layer comprisin...

A certain coal mine has weak layer comprising of 10cm, 11cm, 9cm, 12cm, 15cm , and 19cm of inter laminated shales and mudstone. Design a full column resin bolt support system if th

Trigonometry( bearings and rectilinear figures), a pilot entering a bay on ...

a pilot entering a bay on course 60.3 degrees at speed 12 miles per hour sees a light bearing 37.3 true and 20 minutes later he sees it bearing 20.0 degrees true. if he keeps the

Skeleton pattern, A half skeleton pattern for a hollow pipe is shown. Since...

A half skeleton pattern for a hollow pipe is shown. Since the pipe is symmetrical about the pouring line, the same pattern will serve the purpose of moulding both the halves in two

Absolute return fund, What is Absolute Return Fund The absolute return stra...

What is Absolute Return Fund The absolute return strategies develop returns from active management with small or no underlying market exposure, seeking to achieve positive returns

Replacement analysis of cash flow, Replacement Analysis In the previous...

Replacement Analysis In the previous chapter we have compared various investment alternatives. Two scenarios were considered: single alternative and a set of mutually exclusive

Design structure matrix, what are the types of interactions in the design s...

what are the types of interactions in the design structure matrix?

Four stroke diesel engine, FOUR STROKE DIESEL ENGINE: T he cycle of ev...

FOUR STROKE DIESEL ENGINE: T he cycle of events that takes place in a four -stroke diesel engine has been shown. Unlike the petrol which drawn in a mixture of air and petrol,

engneering mechanics, the speed of an object at the end of 4 succesive sec...

the speed of an object at the end of 4 succesive seconds is 2o,25,3o and 35 m/sec respectvly, what is the acceleration of this object?

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