Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
100%

Transcribed Image Text:& NO.3 The following is the capital Strudhure of ABC Ltd.
Snare
Specific dc.
11%0
Amount
2quity share capital
(2,00,000 shares of Rs- ID each).
Preference share capital
(So.00D shares of Rs.10 each)
Retained Farnings
7.5% Debentures of Rs 1000 each.
R$ 20,00,000
Bs S,D0,000
Rs 1D.00,000.
11%
Bs IS,00,00.
Presently the debentures are being traded at 94% , Preference dhares at par
and the equithy shares at R6.13 þer share. Pind out the WACC based on the
book value weights and market value loeights.
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