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  • WACC Calculation

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    i_love786
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    Given by our professor as an example to be studied

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    Given by our professor as an example to be studied

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    29 views2 pages

    WACC Calculation

    Uploaded by

    i_love786
    Given by our professor as an example to be studied

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    I)

    Capital Structure
    Equity Share Capital
    Pref Shares
    Debentures
    Term Loan
    Total

    Rs
    ATCC %
    80,00,000
    20
    20,00,000
    10
    60,00,000
    6
    40,00,000
    15
    200,00,000

    2)
    Capital Structure
    Equity Share Capital
    Pref Shares
    Retained Earnings

    Rs
    80,00,000
    20,00,000
    60,00,000

    Total

    1,60,000

    3)
    Capital Structure
    Equity Share Capital
    Pref Shares
    Retained Earnings
    Debentures
    Total

    Rs
    40,00,000
    10,00,000
    30,00,000
    20,00,000

    ATCC %
    17
    6
    5.2

    ATCC %
    15.6
    10.5
    15
    4.5

    Work out the WACC and compare which company is


    having better WACC. Why?

    Capital Structure

    Rs

    Equity Share Capital


    Pref Shares
    Debentures
    Term Loan
    Total

    80,00,000
    20,00,000
    60,00,000
    40,00,000
    200,00,000

    Proportion %
    40
    10
    30
    20
    100

    After Tax
    CC %
    %
    20
    10
    6
    15

    8
    1
    1.8
    3
    13.8

    WACC = 13.8%
    2)
    Capital Structure
    Equity Share Capital
    Pref Shares
    Retained Earnings

    Rs
    80,00,000
    20,00,000
    60,00,000

    Total

    1,60,000

    Proportion %

    ATCC %

    50
    12.5
    37.5

    17
    6
    5.2

    WACC %
    8.5
    0.75
    1.95

    100

    11.2

    40
    10
    30
    20

    ATCC %
    WACC %
    15.6
    6.24
    10.5
    1.05
    15
    4.5
    4.5
    0.9
    12.69

    WACC -11.2%
    3)
    Capital Structure
    Equity Share Capital
    Pref Shares
    Retained Earnings
    Debentures
    Total
    WACC 12.69%

    Rs
    Proportion %
    40,00,000
    10,00,000
    30,00,000
    20,00,000
    1,00,00,000

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