Financial Management Assignment
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