SUBJECT: financial and management application I need the answer quickly QUESTION: The following information has been extracted from the balance sheet of Fashions Ltd. Rs (000) Equity Share Capital 400 12% Debentures 400 1,200 2,000 18% Term Loan Determine the weighted average cost. of capital of the company. It had been paying dividends at a consistent rate of 20% per annum. Shares and Debentures are being traded at par. Tax rate is 40%.

Survey of Accounting (Accounting I)
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ISBN:9781305961883
Author:Carl Warren
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Chapter15: Capital Investment Analysis
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SUBJECT: financial and management application
I need the answer quickly
QUESTION:
The following information has been extracted from the balance sheet of
Fashions Ltd.
Rs (000)
Equity Share Capital
12% Debentures
400
400
18% Term Loan
1,200
2,000
Determine the weighted average cost. of capital of the company. It had been
paying dividends at a consistent rate of 20% per annum. Shares and
Debentures are being traded at par. Tax rate is 40%.
1.
Transcribed Image Text:SUBJECT: financial and management application I need the answer quickly QUESTION: The following information has been extracted from the balance sheet of Fashions Ltd. Rs (000) Equity Share Capital 12% Debentures 400 400 18% Term Loan 1,200 2,000 Determine the weighted average cost. of capital of the company. It had been paying dividends at a consistent rate of 20% per annum. Shares and Debentures are being traded at par. Tax rate is 40%. 1.
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