Calculate the Cost of Capital from the following cases: (i) 10-year 14% Preference shares of Rs 100, redeemable at premium of 5% and flotation costs 5%. Dividend tax is 10%. (ii) An equity share selling at Rs 50 and paying a dividend of Rs 6 per share, which is expected to continue indefinitely. (ii...
From the following information, determine the appropriate weighted average cost of capital, relevant for evaluating long-term investment projects of the company. For Solution https://youtu.be/6d82sdREJVE For More Case Studies, Enroll Our Course Financial Management A Complete Study https://courses.c...
XYZ Ltd. has the following capital structure which is considered to be optimum as on 31st March, 2013 The company’s share has a market price of Rs23.60. Next year dividend per share is 50% of year 2013 EPS. The following is the trend of EPS for the preceding 10 years which s expected to continue in ...
A company plans to manufacture and sell 400 units of a domestic appliance per month at a price of Rs 600 each. The ratio of costs to selling price are as follows: Fixed overheads are estimated at Rs4,32,000 per annum. The following norms are maintained for inventory management: Raw materials 30 days...
The following accounting information and financial ratios of XYZ Ltd. relate to the year ended 31st December, 2013: If value of fixed assets as on 31st December, 2012 amounted to Rs 26 lakhs, prepare a summaried profit and loss account of the company for the year ended 31st December, 2013 and also t...