Corporate Finance - NMIMS APRIL 2018 SOLVED ASSIGNMENTS
GET SOLVED ASSIGNMENTS VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at [email protected] YOU MAY CALL US ON - 7506193173 WHATSAPP NUMBER- 9967480770 Internal Assignment Applicable for April 2018 Examination Corporate Finance 1: Calculate the degree of operating leverage and degree of financial leverage for the following firms: Firms A B Sales (Rs.) Variable cost p.u Fixed cost (Rs.) Output (units) Interest 3,60,000 20 72,000 6,000 40,000 7,50,000 150 1,40,000 1,500 80,000 Q2. A Project costs Rs 60,000 and is expected to generate cash inflows as: Year Cash inflows(Rs) 1 10000 2 12000 3 15000 4 18000 5 20000 6 22000 Calculate the Net Present Value of the project if the cost of capital is 10%. Q3. Solve the following: a) A company earns 5 per share. The cost of capital is 10%, the rate of return on investment is 14% and the dividend payout ratio is 25%. Calculate the value of each share by using Walter’s Model. b) XYZ Limited has a paid-up share capital of Rs. 10 lakhs of Rs. 10 each. The company has a dividend payout rate of 10%. Annual growth rate is expected to be 4%. The capitalisation rate is 20%. Calculate the value of the share of XYZ based on Gordon’s Model. GET SOLVED ASSIGNMENTS VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at [email protected] YOU MAY CALL US ON - 7506193173 WHATSAPP NUMBER- 9967480770
