08-05-2010, 10:48 PM
Good day all ,
My question is as follows
V ltd financial report
EBIT R400 000
Tax rate 35%
Value of debt R200 000
Cost of debt 15%
Cost of equity 21%
Num of shares 100 000
All earnings are paid out as dividends and the interest rate on all debt will be 18%.
1. What will be the total market value of the firm's equity?
2. What market price per share?
3. The firm's total market value?
4. The firm's weighted average cost of capital.
If any one out there can assist me in this ,i will really appreciate it.This is due 5 September 2010, please
Many thanks
Flora
My question is as follows
V ltd financial report
EBIT R400 000
Tax rate 35%
Value of debt R200 000
Cost of debt 15%
Cost of equity 21%
Num of shares 100 000
All earnings are paid out as dividends and the interest rate on all debt will be 18%.
1. What will be the total market value of the firm's equity?
2. What market price per share?
3. The firm's total market value?
4. The firm's weighted average cost of capital.
If any one out there can assist me in this ,i will really appreciate it.This is due 5 September 2010, please
Many thanks
Flora
