Premium Essay

Use This Method If You'D Like to Upload a Document from Your Computer. We Support the Following File Types: Doc, Docx, Pdf, Wps, Rtf, Odt

In: Business and Management

Submitted By vicky12321
Words 652
Pages 3
Exercises

Q1. Information about a firm is given below:

Q2. ABC Ltd. has 1.2 million common shares outstanding and following sets of information is applicable to it:
a. Dividend per share (DPS) is 0.30 when net income (NI) is INR 800,000. If the expected investments to be made is INR 1,000,000, estimate the total amount of debt to be raised to fund these investments.
b. If in the previous case, net income would be INR 300,000, estimate the total amount of debt to be raised.
c. If the investments of INR 1,000,000 is to be met by 50% debt and equity each, what will be the DPS if the net income realized would be INR 650,000.
d. If the firm has to maintain a debt-equity ratio of 50% always for its funding requirements and has to pay a DPS of 0.30 when the net income realized is INR 650,000, what will be the maximum investment the firm can make.

Q3. DEF Ltd. is presently an unlevered firm whose cost of equity is 12%. It is contemplating to recapitalize itself so that the resulting debt-equity ratio in market value terms would become 30:70 at the end of third year from now and remain as it is forever. It is estimated that the firm will be taking debt for the three years, whose interest is payable at the end of the year at a rate of 8% p.a., as follows: Time (t=) | 0 | 1 | 2 | Debt taken at the start of the year (INR Mn) | 120 | 180 | 240 |

It is also estimated that the free cash flow to the firm (FCFF) would be growing at a rate of 5% p.a. after year 3. The distribution of FCFF for year end 1-3 is as follows: Time (t=) | 1 | 2 | 3 | FCFF (INR Mn) | -80 | 20 | 65 |

If the risk-free rate is 4.70%, market risk premium is 6%, applicable tax-rate is 40% and the value of all non-operating assets at t=0 is INR 120 MN, estimate the following: a. Total present value of Tax-shields for next three years. b. Total present

Similar Documents

Free Essay

Use This Method If You'D Like to Upload a Document from Your Computer. We Support the Following File Types: Doc, Docx, Pdf, Wps, Rtf, Odt

...Phương pháp nghiên cứu khoa học TS. Trần Tuấn Anh Tp Hồ Chí Minh, 2013 1 Môn học: Phương pháp nghiên cứu khoa học Số tin chỉ: 2 Mục tiêu: Cung cấp những kiến thức cơ bản về nghiên cứu khoa học. Bắt đầu từ chọn đề tài nghiên cứu, lập kế hoạch nghiên cứu, tìm và xử lý tài liệu tham khảo, cách thức viết, trình bày một báo cáo kết quả nghiên cứu – Đặc biệt là tập trung vào việc thực hiện được các tiểu luận, đề án, luận văn tốt nghiệp. Đánh giá: Làm tiểu luận (bài tập lớn): 30%. Thi cuối kì (tự luận): 70%. 2 Tài liệu tham khảo Giáo trình chính: 1. Hoàng Văn Huệ, Phương pháp tiếp cận nghiên cứu khoa học, Trường đại học Công Nghiệp Thực Phẩm tp. Hồ Chí Minh, 2011. Tài liệu tham khảo: 1. Vũ Cao Đàm. Phương pháp luận nghiên cứu khoa học. NXB Khoa học và Kỹ thuật. 2007. 2. Nguyễn Văn Tuấn. Đi vào nghiên cứu khoa học. NXB Tổng hợp TPHCM. 2011. 3. Nhật Từ, Cẩm nang viết khảo luận, luận văn, luận án. NXB tp.HCM, 2003. 4. Vũ Gia Hiền, Để viết bài luận văn tốt, NXB Lao Động, 2006. 3 Mở đầu: Đối tượng và ý nghĩa của phương pháp luận NCKH I. Đối tượng và nội dung nghiên cứu của phương pháp luận NCKH II. Ý nghĩa của nghiên cứu và nắm vững phương pháp luận NCKH Bốn lời khuyên vàng của Steven Weinberg 4 I. Đối tượng và nội dung nghiên cứu của phương pháp luận NCKH • Đối tượng nghiên cứu: + Tổng kết, phân loại, hệ thống hóa hoạt động NCKH + Khái quát cơ chế, phương pháp sáng tạo khoa học. + Tìm tòi biện pháp tổ chức, quản lý quá trình nghiên cứu khoa học...

Words: 1434 - Pages: 6

Free Essay

Use This Method If You'D Like to Upload a Document from Your Computer. We Support the Following File Types: Doc, Docx, Pdf, Wps, Rtf, Odt

...Volleyball is a team sport in which two teams of six players are separated by a net. Each team tries to score points by grounding a ball on the other team's court under organized rules.[1] It has been a part of the official program of the Summer Olympic Gamessince 1964. A scene of Volleyball play in Ervadi village. The complete rules are extensive. But simply, play proceeds as follows: a player on one of the teams begins a 'rally' by serving the ball (tossing or releasing it and then hitting it with a hand or arm), from behind the back boundary line of the court, over the net, and into the receiving team's court. The receiving team must not let the ball be grounded within their court. The team may touch the ball up to 3 times but individual players may not touch the ball twice consecutively. Typically, the first two touches are used to set up for an attack, an attempt to direct the ball back over the net in such a way that the serving team is unable to prevent it from being grounded in their court. The rally continues, with each team allowed as many as three consecutive touches, until either (1): a team makes a kill, grounding the ball on the opponent's court and winning the rally; or (2): a team commits a fault and loses the rally. The team that wins the rally is awarded a point, and serves the ball to start the next rally. A few of the most common faults include: * causing the ball to touch the ground outside the opponents' court or without first passing over the net; ...

Words: 353 - Pages: 2

Free Essay

About Me

...Gyan gyan gyan Use this method if you'd like to upload a document from your computer. We support the following file types: doc, docx, pdf, wps, rtf, odt Use this method if you'd like to upload a document from your computer. We support the following file types: doc, docx, pdf, wps, rtf, odt Use this method if you'd like to upload a document from your computer. We support the following file types: doc, docx, pdf, wps, rtf, odt Use this method if you'd like to upload a document from your computer. We support the following file types: doc, docx, pdf, wps, rtf, odt I saw a request on stockmarketpilipinas.com for valuations of National Bookstore Inc (NBSI). With the recent subscription of shares by NBSI into Vulcan Mining, a lot of people are speculating that NBSI will list itself through Vulcan Mining through a possible swapping/purchasing of each others shares. Here’s a couple of figures to help out in case you decide to go into the deal. National Bookstore Inc. (NBSI) is the holding company of the Ramos group with interests in the sale and distribution of books and/or school suppliers. The company has several stakes in the following book companies (as of 12/31/2013): I saw a request on stockmarketpilipinas.com for valuations of National Bookstore Inc (NBSI). With the recent subscription of shares by NBSI into Vulcan Mining, a lot of people are speculating that NBSI will list itself through Vulcan Mining through a possible swapping/purchasing of each others shares. Here’s...

Words: 416 - Pages: 2

Premium Essay

Docu Search

...Qwjheygjqwhgejhigaxgbdjkgquetqwiuegaskl Wqeqwklejhkqw Qweqweqw Eqweqweqwe Eqweqweqw Wer Wer Wer Werwer Wer wer wer wer wer werwerwerwerwe wer wer wer wer About 204,000,000 results (0.50 seconds)  1. Write English Essay - Free Essay Writing Samples Online‎ Adwww.curriki.org/writing-essays‎ 1. Get Samples for Teachers & Students * Support Child Education * Register With Us * Open Educational Resource ------------------------------------------------- Top of Form Bottom of Form Search Results 1. www.scribendi.com a short literary composition on a particular theme or subject, usually in prose and generally analytic, speculative, or interpretative. 2. anything resembling such a composition: a picture essay. Essay | Define Essay at Dictionary.com dictionary.reference.com/browse/essay More about Essay Feedback Essay - Wikipedia, the free encyclopedia en.wikipedia.org/?title=Essay Essays are generally scholarly pieces of writing giving the author's own argument, but the definition is vague, overlapping with those of an article, a pamphlet and a short story. ‎Michel de Montaigne - ‎Five paragraph essay - ‎Application essay - ‎Introduction Writing Tips: Essay Builder - WritingDEN www2.actden.com/writ_Den/tips/essay/index.htm Explores the parts and provides step-by-step directions for writing essays. Essay | Define Essay at Dictionary.com dictionary.reference.com/browse/essay a short literary composition on a particular theme or subject, usually in prose...

Words: 1466 - Pages: 6