Assume you have been appointed a a Director of Delta Holdings and that you are to calculate the cost of capital of the company on the following proposed capital structure of the company -1 500 000 ordinary shares with a market price of R3 per share. The latest dividend declare was 90 cents per share. A dividend growth of 13% was maintained for the past 5 years -1 000 000 12% R1 preference shares with a market value of R2 per share
Assume you have been appointed a a Director of Delta Holdings and that you are to calculate the cost of capital of the company on the following proposed capital structure of the company -1 500 000 ordinary shares with a market price of R3 per share. The latest dividend declare was 90 cents per share. A dividend growth of 13% was maintained for the past 5 years -1 000 000 12% R1 preference shares with a market value of R2 per share
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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Assume you have been appointed a a Director of Delta Holdings and that you are to calculate the cost of capital of the company on the following proposed capital structure of the company
-1 500 000 ordinary shares with a market price of R3 per share. The latest dividend declare was 90 cents per share. A dividend growth of 13% was maintained for the past 5 years
-1 000 000 12% R1
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