Financial Management Assignment
Question1. From the below given data calculate the overall cost of capital (WACC) for Business Scanner Ltd.
|
Equity Capital |
20,00,000 |
|
11?bt |
30,00,000 |
|
Tax Rate |
30% |
|
Risk free rate of return |
6% |
|
Sensex yearly return |
15% |
|
Beta |
1.4 |
Question 2. Ramadheer wants to invest 10,00,000 for 5 years and he is having 2 investments option.
Option 1 Investment in mutual fund with return of 12%
Option 2 50% investment in shares with return of 14% and
50% investment in bonds with return of 10% Find out which option should be considered?
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. Net present value method
Question 3b. Profitability Index
