1.

A company was recently formed to manufacture a product. It has the following Capital Structure: S. No. Particulars 1. 9% Debentures 2. 7% Preference Shares 3. Equity Shares (24,000 Equity Shares of Rs. 10 each) 4. Retained Earnings Amount (Rs.) 18,00,000 per share is Cost of the 4. Total The Market Price of Equity Shares is Rs. 40 per share. A dividend of Rs. 4 proposed. The company has a marginal tax rate 50%. Compute the Weighted Average Capital of the company.​

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Explanation:

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