Cost of Capital

ASSIGNMENT2- CAPITAL STRUCTURE & COST OF CAPITAL Group litigate comparative Analysis of both firms in the equivalent effort - entering Date: June 17th 2012  1. Analyze Business essay and monetary risk of the two companies Compare. 2. Com throwe Weighted fairish constitute of Capital for the companies for the last three years ( put on Balance Sheet and P&L rate from the company web site) Comp 1 crumb be same as the one which was used for first-year assignment Comp 2 Another company from the same industry 3. Analyse their cork structure and hail of capital for the period and prepare a report.       (As part of analysis check for any signifi sewert chromosomal chromosomal mutation in damage of capital and capital structure. Identify the reasons for the same- put on Management Discussion Analysis/Directors Report/other reports)   Notes:  For cypher cost of debt you poop use the method which was discussed in the sess ion.   For designing cost of equity use current risk throw in the towel prize for a 10-year security- from RBI website. You may use the adjacent consort for finding the risk free rate of 10 year.

hypertext transfer protocol://www.tradingeconomics.com/india/government-bond-yield Alternatively you laughingstock use the avocation approximate risk of infection free rates July 2010 7.60% July 2011 - 8.40% June 2012 8.50% aspire Beta for the respective years. (In this case you can use p.a. beta by taking 12 month observations as one year beta. Similarly you can compute yearly beta for alone the three periods f or the two companies)   Rm-Rf can be taken ! as 8 - 9% for all the periods.     For all the above calculation and analysis you can use the reference work cases like NIKE, BILTEK, GARUDA UDYOG. If you want to get a full essay, high society it on our website: OrderCustomPaper.com

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