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Alpha Ltd. has furnished the following information: - Earning Per Share (EPS) *4 - Dividend...

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Finance

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Alpha Ltd. has furnished the following information: - Earning Per Share (EPS) *4 - Dividend payout ratio 25% - Market price per share *50 - Rate of tax 30% - Growth rate of dividend 10% The company wants to raise additional capital of 10 lakhs including debt of * 4 lakhs. The cost of debt (before tax) is 10% up to 2 lakhs and 15% beyond that. Compute the after tax cost of equity and debt and also weighted average cost of capital

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