Nmims 2020 customized assignments - Equity shares of the face value of _ 10 each will be issued at a premium of _ 10 per share.
Nmims 2020 customized assignments - Equity shares of the face value of _ 10 each will be issued at a premium of _ 10 per share.
Nmims 2020 customized assignments - Equity shares of the face value of _ 10 each will be issued at a premium of _ 10 per share.
Nmims 2020 customized assignments - Equity shares of the face value of _ 10 each will be issued at a premium of _ 10 per share.
For answersheets contact
info.answersheets@gmail.com
+91 95030-94040
Corporate Finance
1. ABC Ltd. is considering two financing plans to raise ₹ 8, 00,000. The key information is as follows:
TABLE GIVEN BELOW:
Plan
|
Equity
|
Debt
|
Preference Shares
| ||
1
|
50%
|
50%
| |||
2
|
50%
|
50%
| |||
Expected EBIT is ₹ 2, 40,000.
Cost of Debt is 10% and cost of Preference Shares is 10%.
Tax rate is 50%.
Equity shares of the face value of ₹ 10 each will be issued at a premium of ₹ 10 per share.
Calculate Earnings per share for plan 1 and 2 and suggest which one is better. (10 Marks)
2. A Project costs ₹ 60,000 and is expected to generate cash inflows as:
Year
|
Cash inflows(₹)
|
1
|
10,000
|
2
|
12,000
|
3
|
15,000
|
4
|
18,000
|
5
|
20,000
|
6
|
22,000
|
Calculate Net Present Value and Profitability Index. Comment whether project should be accepted or not. Assume cost of capital is 10%. Enumerate the steps of calculation of NPV.
3. The following information is given for Alpha Ltd.
Earnings per share
|
₹ 12
| ||
Dividend per share
|
₹ 3
| ||
Cost of Capital
|
18%
| ||
Internal Rate of Return On Investment
|
22%
| ||
Retention Ratio
|
75%
| ||
Calculate the market price per share using
a. Gordon’s Dividend Model (5 Marks)
b. Walter’s Dividend Model (5 Marks)
 |
| Nmims 2020 customized assignments - Equity shares of the face value of _ 10 each will be issued at a premium of _ 10 per share. |
For answersheets contact
info.answersheets@gmail.com
+91 95030-94040
Comments
Post a Comment