Rs.
| Equity Shares (Rs. 9 each) | 20,00,000 |
| Retained Earnings | 10,00,000 |
| 9% Preference Shares (Rs. 100 each) | 5,00,000 |
| 12% Debentures (Rs. 100 each) | 15,00,000 |
| 50,00,000 |
The equity shares of the company sales for Rs. 30. It is expected that company will pay Rs. 3 per share this year. Corporate tax rate is 50%. Assume 20% as income tax rate of individual shareholder. Compute weighted average cost of capitnl of existing capital structure.
Question based on IACT MBA Assignment Solution and other course
Solution:
Calculation of Different Source of Capital (i) Cost of Equity Shares
