Cost of Capital

ASSIGNMENT2- CAPITAL STRUCTURE & COST OF CAPITAL Group mildew comparative Analysis of both firms in the very(prenominal) effort - entering Date: June 17th 2012  1. Analyze Business take a chance and monetary risk of the two companies Compare. 2. Com practicee Weighted fairish constitute of Capital for the companies for the last three years ( put on Balance Sheet and P&L banknote 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 revolution in damage of capital and capital structure. Identify the reasons for the same- rehearse Management Discussion Analysis/Directors Report/other reports)   Notes:  For calculative cost of debt you poop use the method which was discu ssed in the session.   For scheming cost of equity use current risk separated prize for a 10-year security- from RBI website. You may use the by-line 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 succeeding(a) approximate risk of infection free rates July 2010 7.60% July 2011 - 8.40% June 2012 8.50% describe Beta for the respective years. (In this case you can use annu totallyy beta by taking 12 month observations as one year beta. Similarly you can compute annual beta for all the three periods for the two compa! nies)   Rm-Rf can be taken as 8 - 9% for all the periods.     For all the above calculation and analysis you can use the propagation cases like NIKE, BILTEK, GARUDA UDYOG. If you want to get a full essay, gear up it on our website: OrderCustomPaper.com

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