QUESTION   ONE You are provided with the following information relating to V ltd Equity and liabilities 12% debentures (shs1000 at par)                    16,000 10% preferences shares                                      6,250 Ordinary shares (Shs 10 par)                            12,500 Retained earnings                                             28,125 Additional information The debentures are currently selling at Shs 950 in the market Company paid a dividend of Shs 5.00 per ordinary share and they are expected to grow at a rate of 10% per annum. The corporation tax is 40% Required Effective Cost of debt                                                                                      Cost of equity                                                                                                  Weighted Average cost of capital

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