diff_months: 21

Financial Management Assignment

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Added on: 2023-05-19 05:24:35
Order Code: 490194
Question Task Id: 0

Question1.From the below given data calculate the overall cost of capital (WACC) for Business Scanner Ltd.

EquityCapital

20,00,000

11?bt

30,00,000

TaxRate

30%

Riskfreerateofreturn

6%

Sensex yearlyreturn

15%

Beta

1.4

Question 2.Ramadheerwantsto invest10,00,000for5 yearsandhe ishaving2 investmentsoption.

Option1 Investmentin mutualfundwithreturnof12%

Option2 50%investmentin shareswithreturnof 14%and

50%investmentin bondswithreturnof10%Find outwhichoptionshouldbeconsidered?

Question3.The Adani has two alternative proposals under consideration. Project Food Chain requires a capital outlay of Rs. 50,00,000 and Project Ice Cream Parlor requires Rs. 100,00,000. Both are estimated to provide a cash flow for five years: Project Chai Rs. 18,00,000 per year and Project Ice Cream Parlor Rs. 35,00,000 per year. The cost of capital is 14%. Show which of the two projects is preferable from the view point of

Question 3a.Netpresentvaluemethod

Question 3b. ProfitabilityIndex

  • Uploaded By : Katthy Wills
  • Posted on : May 19th, 2023
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