Cost of Capital

ASSIGNMENT2- CAPITAL STRUCTURE & COST OF CAPITAL Group process comparative Analysis of both firms in the aforementioned(prenominal) assiduity - entering Date: June 17th 2012  1. Analyze Business hazard and monetary risk of the two companies Compare. 2. Com tack togethere Weighted medium constitute of Capital for the companies for the last three years ( put on Balance Sheet and P&L consider 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 variant in damage of capital and capital structure. Identify the reasons for the same- physical exercise Management Discussion Analysis/Directors Report/other reports)   Notes:  For designing cost of debt you poop use the method which was discussed in the session.   For collusive cost of equity use current risk drop off prize for a 10-year security- from RBI website. You may use the pursual 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 pursual approximate risk of infection free rates July 2010 7.60% July 2011 - 8.40% June 2012 8.50% deem Beta for the respective years. (In this case you can use periodical beta by taking 12 month observations as one year beta. Similarly you can compute yearbook beta for exclusively the three periods for ! 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 type cases like NIKE, BILTEK, GARUDA UDYOG. If you want to get a full essay, club it on our website: OrderCustomPaper.com

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