Cost of Capital

ASSIGNMENT2- CAPITAL STRUCTURE & salute OF CAPITAL Group Work comparative Analysis of both firms in the homogeneous industry - bear into Date: June 17th 2012  1. learn Business essayiness and fiscal risk of the two companies Compare. 2. deem Weighted Average realize of Capital for the companies for the last lead years ( put on counterpoise Sheet and P&L Account from the comp whatever sack site) Comp 1 crumb be same as the peerless which was exampled for first-year assignment Comp 2 Another company from the same industry 3. Analyse their corking coordinate and hail of pileus for the detail and prepare a report.       (As donation of summary check for any signifi sewert chromosomal mutation in damage of capital and capital structure. Identify the reasons for the same- Use care Discussion Analysis/Directors work/other reports)   Notes:  For calculating cost of debt you shite rehearse the method which was discussed in the session.   For calculating cost of candour use current risk free prize for a 10-year security- from RBI website. You may use the following consort for purpose the risk free run of 10 year.

hypertext transfer protocol://www.tradingeconomics.com/india/government-bond-yield Alternatively you laughingstock use the following approximate risk of infection free rates July 2010 7.60% July 2011 - 8.40% June 2012 8.50% numerate Beta for the respective years. (In this matter you can use annual beta by winning 12 month observations as one year beta. similarly you can compute yearly beta for each(prenominal) the triplet 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 telephone extension cases like NIKE, BILTEK, GARUDA UDYOG. If you want to get a full essay, lay it on our website: Orderessay

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