Reply
Wed 2 Oct, 2013 03:09 am
Green Packet Bhd is financed by three sources of funds,bonds,preferred stock and common stock. The bonds, sold at par,with a 10.4% coupon.the preferred stock, sold at rm105 with guaranteed dividend of 10%.the common stock,presently priced at rm20,plays a dividend of rm2 per share.the dividend is expected to grow at 12% in the future.the marginal tax rate imposed by government is 40%.compute the after-tax cost of the following:
a)bond
b)preferred stock
c)common stock
@imaamalina,
It's taken twelve days and over four thousand data entries on to my PC, but finally I've produced an answer.
Three kilos exactly.