1) Calculate the cost of equity using the CAPM method, take a ready beta and please mention...
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Question:
1) Calculate the cost of equity using the CAPM method, take a ready beta and please mention the source. For the risk-free return use the yield on 10 yr Government of India bonds i.e. 7.40%.Assume the market return at 15 %?
2) Explain the Dividend Growth Model as a method of calculation of the cost of equity with a suitable illustration/
3) Calculate the cost of debt from the financial statements (Interest / total debt) (ensure you calculate the average value of debt, i.e. the average of the current year in consideration and the previous financial year)?Calculate the tax rate (Tax / PBT)/
4) Calculate the cost of capital of the company?
Related Book For
Financial Analysis with Microsoft Excel
ISBN: 978-1285432274
7th edition
Authors: Timothy R. Mayes, Todd M. Shank
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