Saturday, May 26, 2018
08:51 PM (GMT +5)

 CSS Forums introduction to business finance, need help solving this , can anyone calculate it
 User Name Remember Me? Password

#1
Sunday, November 27, 2016
 Junior Member Join Date: Nov 2016 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts
introduction to business finance, need help solving this , can anyone calculate it

Now assume that xyz company wants to make a capital expenditure of Rs.500,000. Your company has the following capital structure:
Debt = 40%; rd = 8%
Preferred Stock = 10%; rps = 9%
Common Stock = 50%; rs = 11.6%
Tax Rate = 30%
Initial Cost of the project P0= Rs. 500,000

Cash Flows are:
1st Year 250, 000
2nd Year 150,000
3rd Year 125,000
4th Year 100,000
5th Year 50,000

Calculate the following for your company:
a) WACC
b) Net Present Value (NPV)
c) Internal Rate of Return (IRR)
d) Regular Pay Back Period
e) Discounted Pay Back Period
f) Price Index (PI)

 Posting Rules You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is OffTrackbacks are On Pingbacks are On Refbacks are On Forum Rules

 Similar Threads Thread Thread Starter Forum Replies Last Post Janeeta Journalism & Mass Communication 14 Wednesday, November 11, 2015 11:03 AM Islaw Khan Topics and Notes 4 Saturday, April 18, 2009 09:56 AM sibgakhan Computer Science 5 Friday, January 26, 2007 06:52 PM atifch Essay 6 Friday, December 22, 2006 10:24 PM

 CSS Forum - Privacy Statement - Terms of Service - Top

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of CSSForum.com.pk (unless CSSForum.com.pk is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.