Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. Calculate the value of share from the following information: Profit after tax of the company * 290 crores Equity capital of company { 1,300 crores Par value of share 40 each Debt ratio of company (Debt/ Debt + Equity) 27% Long run growth rate of the company 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share { 47 Depreciation per share { 39 { 3.45 per share Change in Working capital

1. Calculate the value of share from the following information: Profit after tax of the company * 290 crores Equity capital of company { 1,300 crores Par value of share 40 each Debt ratio of company (Debt/ Debt + Equity) 27% Long run growth rate of the company 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share { 47 Depreciation per share { 39 { 3.45 per share Change in Working capital

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 8P
See similar textbooks
icon
Related questions
Question
Please help me
1. Calculate the value of share from the following information: Profit after tax of the company 3 290 crores Equity capital of company * 1,300 crores Par value of share { 40 each Debt ratio of company (Debt/ Debt + Equity) Long run growth rate of the company 27% 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share 47 * 39 { 3.45 per share Depreciation per share Change in Working capital
Transcribed Image Text:1. Calculate the value of share from the following information: Profit after tax of the company 3 290 crores Equity capital of company * 1,300 crores Par value of share { 40 each Debt ratio of company (Debt/ Debt + Equity) Long run growth rate of the company 27% 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share 47 * 39 { 3.45 per share Depreciation per share Change in Working capital
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed…
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS