Question 31a
Marking Guide

31 (a) Dividend for 20X7 1
Dividend growth rate 1
Cost of equity 1
Cost of pref shares 1
After-tax interest 1
Kd calculation setup 1
Calculating Kd 1
Cost of bank loan 0·5
MV ordinary shares 0·5
MV pref shares 0·5
MV loan notes 0·5
WACC calculations 2

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