Question

Capital structure of ABC Co.Ltd. is as follows. Dividend per share is ` 5. Market price per share is ` 120. Tax rate assumed to be 50%. Calculate weighted average cost of capital of company.

Answer 1

Explanation

After 1st operation, the array will become, A = [3,2,4,4]. So, sum of elements = 13.

After 2nd operation, the array will become, A = [3,2,4]. So, sum of elements = 9.