Monoplast Co. Ltd. has the following capital structure on 31 st March, 2013 : ₹ Equity shares (4,00,000 shares) 80,00,000 10% Preference shares 20,00,000 14% Debentures 60,00,000 1,60,00,000 Share of the company sells fo

Monoplast Co. Ltd. has the following capital structure on 31 st March, 2013 : ₹ Equity shares (4,00,000 shares) 80,00,000 10% Preference shares 20,00,000 14% Debentures 60,00,000 1,60,00,000 Share of the company sells for ₹20. It is expected that company will pay next year a dividend of ₹2 per share which will grow at 7% forever. Tax rate is 30%. You are required to compute weighted average cost of capital.