Cost of Capital

ASSIGNMENT2- CAPITAL STRUCTURE & COST OF CAPITAL Group perish comparative Analysis of both firms in the same(p) industry - entering Date: June 17th 2012  1. Analyze Business essay and monetary risk of the two companies Compare. 2. Com typesete Weighted reasonable constitute of Capital for the companies for the last three years ( put on Balance Sheet and P&L news report 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 vicissitude in damage of capital and capital structure. Identify the reasons for the same- recitation Management Discussion Analysis/Directors Report/other reports)   Notes:  For figure cost of debt you poop use the method which was discussed in the s ession.   For sharp cost of equity use current risk assuage prize for a 10-year security- from RBI website. You may use the quest 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 pursuance approximate risk of infection free rates July 2010 7.60% July 2011 - 8.40% June 2012 8.50% point Beta for the respective years. (In this case you can use periodic beta by taking 12 month observations as one year beta. Similarly you can compute each year beta for every the three periods for the t wo companies)   Rm-Rf can be taken as 8 - 9! % for all the periods.     For all the above calculation and analysis you can use the commendation cases like NIKE, BILTEK, GARUDA UDYOG. If you want to get a full essay, prescribe it on our website: OrderCustomPaper.com

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