Kea (Pty) Ltd. has the following capital structure as of 28 February 2022:

ZAR

Debentures @10% interest p.a. 7.2 million

Preference shares @9% dividend 4.8 million

600,000 ordinary shares of R 10 each 6 million

The ordinary shares of the company are quoted at R10 and the company is expected to declare a dividend of R0.90 per share for 2022. The company has registered a dividend growth rate of 5% which is expected to be maintained. The tax rate applicable to the company is 27%.

Calculate:

The weighted average cost of capital.

asked by guest
on Nov 14, 2024 at 2:12 pm



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