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A Ltd wants to issue 2000 new shares of Rs 100 each at par. The flotation cost is 5%. Co. paid dividend of Rs 15 in the last year & expected to grow by 7%. Find Ke : a) in case of new equity shares b) for existing shareholders Market Price is Rs 160 p.s.

A company has issued 10,000 equity shares of Rs 100 each. Company has been paying divided to equity shareholders at 25% p.a. The market value of shares is Rs 180. Compute cost of equity.

Z Co. Ltd issues 9% debenture of Rs 600000, face value of the debenture is Rs 100 at par value. It spent Rs 20,000 as floating expense on issue of debenture. Compute cost of debt, if tax rate is 40%.

K Pvt. Ltd issued 10% preference shares, face value Rs 10 each, redeemable after 8 years. Total number of shares issued are 50,000. Preference shares are to be redeemed at 20% premium. The cost of issue of such shares is 50 paise per share. Compute Kp