Maria Ltd has the following capital structures as at 31/4/2019 ordinary shares capital (400,000 shares) of ksh. 16,000,000 10% prefence share capital of ksh. 2,000,000 14% Bond capital of ksh. 14,000,000 The market price of each ordinary shares as at 31/4/2019 was sh. 40. the firm paid a divinded of sh. 4 for each ordinary shares for the year ended 31/4/2019. The annual growth rate in the divinded is 7%. The corporation tax rate is 30% Compute the cost of equity and Debt Compute the weighted average cost of capital of the firm as at 31/4/2019
Maria Ltd has the following capital structures as at 31/4/2019 ordinary shares capital (400,000 shares) of ksh. 16,000,000 10% prefence share capital of ksh. 2,000,000 14% Bond capital of ksh. 14,000,000 The market price of each ordinary shares as at 31/4/2019 was sh. 40. the firm paid a divinded of sh. 4 for each ordinary shares for the year ended 31/4/2019. The annual growth rate in the divinded is 7%. The corporation tax rate is 30% Compute the cost of equity and Debt Compute the weighted average cost of capital of the firm as at 31/4/2019
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...
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Maria Ltd has the following capital structures as at 31/4/2019
ordinary shares capital (400,000 shares) of ksh. 16,000,000
10% prefence share capital of ksh. 2,000,000
14% Bond capital of ksh. 14,000,000
The market price of each ordinary shares as at 31/4/2019 was sh. 40. the firm paid a divinded of sh. 4 for each ordinary shares for the year ended 31/4/2019. The annual growth rate in the divinded is 7%. The corporation tax rate is 30%
- Compute the
cost of equity and Debt - Compute the weighted average cost of capital of the firm as at 31/4/2019
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