My orders
How it works
Examples
Reviews
Blog
Homework Answers
Submit
Sign in
How it works
Examples
Reviews
Homework answers
Blog
Contact us
Submit
Fill in the order form to get the price
Subject
Select Subject
Programming & Computer Science
Math
Engineering
Economics
Physics
Other
Category
Statistics and Probability
Calculus
Differential Equations
Quantitative Methods
Discrete Mathematics
Financial Math
Real Analysis
Abstract Algebra
Linear Algebra
Complex Analysis
Functional Analysis
Differential Geometry | Topology
Combinatorics | Number Theory
Analytic Geometry
Operations Research
Other
Deadline
Timezone:
Title
*
Task
*
CP India Ltd has the following capital structure, which it considers optimal: Debt 25% Preference Shares 15% Equity shares 60% Total 100% Applicable tax rate for CPIL is 25%. and investors expect earnings and dividends to grow at a constant rate of 9% in the future. Risk free rate of return is 6%, average equity share has expected rate of return of 15%. CPIL’s beta is 1.50. Following terms would apply to new securities being issued as follows: 1. New preference can be issued at a face value of Rs. 100 per share, dividend and cost of issuance will be Rs. 8 per share and Rs. 4 per share respectively. 2. Debt will bear an interest rate of 10%. Calculate a. Component cost of debt, preference shares and equity shares assuming that CPIL does not issue any additional equity shares. b. WACC.
I need basic explanations
Special Requirements
Upload files (if required)
Drop files here to upload
Add files...
Account info
Already have an account?
Create an account
Name
*
E-mail
*
Password
*
The password must be at least 6 characters.
I agree with
terms & conditions
Create account & Place an order
Please fix the following input errors:
dummy
