Assignment - Weighted Average Cost of Capital

[hinanifaf]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by hinanifaf</i>
<br />Good day all ,
My question is as follows
V ltd financial report
EBIT R400 000
Tax rate 35%
Value of debt R200 000
Cost of debt 15%
Cost of equity 21%
Num of shares 100 000
All earnings are paid out as dividends and the interest rate on all debt will be 18%.

1. What will be the total market value of the firm's equity?
2. What market price per share?
3. The firm's total market value?
4. The firm's weighted average cost of capital.

If any one out there can assist me in this ,i will really appreciate it.This is due 5 September 2010, please

Many thanks
Flora
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

I have tried to work this out myself,please any one who can comment on this please do so thanks in advance
EBIT 400000
Less Interest 18% -72000
328000
Less Tax -114800
Net Profit after tax 213200
Num of shares 100000
EPS 2.132

A) Market value 213200 -(213200x21%)
213200 - 44772
168428

B) Market price 168428/100000
1.68

c) Total market value V = E + D
168428 + (200000 -15%)
168428 + (200000 - 30000)
168428 + 170000
338428

Market Value Weigh Cost WACC
D) Equity 168428 0.50 15% 0.07
Debt 170000 0.50 21% 0.11
338428 1.00 0.18