Tm consult ltd has 85 million ordinary shares in issues


T&M consult ltd has 8.5 million ordinary shares in issues with a current market valve of GHC 1.5 per shares. The expected dividend for next year is 15 pesewase per share and this expected to grow each year at a constant rate of 4.5 per cent. The business also has 9 million, 8.2 per cent GHc 1 irredeemable preference shares in issues with market price of GHC0.85 per share and GHC 21 million of irredeemable loan capital in issue with a nominal rate of interest of 5.5 per cent and which is quoted at GHc 100 nominal valve. Assume a tax rate of 18 per cent and that , the current capital structure reflect the target capital structure of the business. What is the weighted average cost of capital for the business

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Financial Management: Tm consult ltd has 85 million ordinary shares in issues
Reference No:- TGS02681768

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