Q2 a. The capital structure of Z Ltd. is given below: Particulars Amount (in Rs.) Equity share Capital ( shares of Rs. 10 each) 1000000 12% Preference share capital (Share of Rs.100 each) 200000 10%...

Extracted text: Q2 a. The capital structure of Z Ltd. is given below: Particulars Amount (in Rs.) Equity share Capital ( shares of Rs. 10 each) 1000000 12% Preference share capital (Share of Rs.100 each) 200000 10% term loan 500000 11% debentures of Rs.100 each) 800000 Retained Earnings 800000 The expected dividend is Rs. 2.2 per equity share and its is expected to grow at 7%. Equity shares are trading at Rs.22. Preference shares are trading at Rs.95 and are redeemable after 10 years. Debentures are selling at 96% and are redeemable after 10 years. Tax rate is 35%. Calculate the WACC using book value and market value weights. (16)