Question

2018 Full Marks - 80 Time - 3 hours The figures in the right-hand margin indicate marks Answer all questions a) Define and discuss the various procedures for payment of Service Tax. 10​

Answer 1

Answer:

The next expected dividend per share is `1.50. The

dividend per share is expected to grow at the rate of

7%. The market price per share is `20. Preference

stock, redeemable after 10 yrs, is currently selling

for `75 per share. Debenture redeemable after 6 yrs

is selling for `80 per debenture. The tax rate for the

company is 50%. Calculate the weighted average

cost of capital using book value proportions.