Beltrois Ltd has the following capital structure:
- paying dividend of 10% of par value
- market value $5.00 per share.
- paying contracted dividend
- market value $2.00 per share.
Company Tax Rate 30%
Required: Calculate the Weighted Average Cost of Capital (using market values).
Tip: The ordinary and preference shares are $2 shares, this affects the amount of dividend
$ Proportion % Market Value $
Weighted Average Cost of Capital (WACC)
(using market values)
Component Market Value $ Proportion % Cost % WACC %
Given that the company tax rate is 30% calculate the imputation credit and taxable amount for the following dividends received by resident individual shareholders. Assume that all dividends are fully franked.: