depreciation earnings loan 0.

471
0.3 0.075 0.426 0.3195 0
0.3 0.075 0.426 0.3195 0
0.3 0.075 0.426 0.3195 0
0.3 0.075 0.426 0.3195 -0.471

r0=.13

-1.2 ₹ 0.24 ₹ 0.95 ₹ 0.14

interest floatation -0.045
0.044745 0.033559 0.01125 0.002813
0.044745 0.033559 0.01125 0.002813
0.044745 0.033559 0.01125 0.002813
0.044745 0.033559 0.01125 0.002813

₹ -0.11 ₹ -0.04
q1 798755.1995
depreciation ebt pat dep tex sheild interest payback loan amt
159751.0399 245000 193550 33547.718377 ₹ 36,000.00
159751.0399 245000 193550 33547.718377 ₹ 36,000.00
159751.0399 245000 193550 33547.718377 ₹ 36,000.00
159751.0399 245000 193550 33547.718377 ₹ 36,000.00
159751.0399 245000 193550 33547.718377 ₹ 36,000.00 450000

tax 0.21
r0 0.13 ₹ -232,546.63
npv ₹ -0.00 should be 0
apv ₹ -667,440.00
dep 159751.03989

q2
pat dep tax sheild
-1.2
0.3 0.426 0.3195 0.075
0.3 0.426 0.3195 0.075
0.3 0.426 0.3195 0.075
0.3 0.426 0.3195 0.075

r0 0.13
tc 0.25
npvu ₹ -0.01
npvf ₹ 0.29
apv ₹ 0.28
total tax sheild pv
₹ 36,000.00 ₹ 7,560.00 ₹ 30,184.89
₹ 36,000.00 ₹ 7,560.00
₹ 36,000.00 ₹ 7,560.00
₹ 36,000.00 ₹ 7,560.00
₹ 486,000.00 ₹ 7,560.00

₹ -0.95

0.045 4.26
0.01125 0.0028125 ₹ -0.04 0.4047 0.303525 0.303525
0.01125 0.0028125 0.4047 0.303525 0.303525
0.01125 0.0028125 0.4047 0.303525 0.303525
0.01125 0.0028125 0.4047 0.303525 4.26 4.563525
₹ 0.32
₹ 3.94
initial 10
tc 0.21
rf 0.1
r0 0.2

2 0.42 3.5 2.765

2 0.42 3.5 2.765
2 0.42 3.5 2.765
2 0.42 3.5 2.765
2 0.42 3.5 2.765

a ₹ 8.27
b ₹ 1.59
c -10
npvu ₹ -0.1388
tax shield
loan 7.5 0.015152 0.003182
before floa 7.57576 0.015152 0.003182
floatation 0.07575758 0.015152 0.003182
npvfloatat ₹ -0.064 0.015152 0.003182
0.015152 0.003182
interest principal p principle r
interest sh ₹ 0.603 0.757576 0.598485 ₹ -2.27 -4.703949 7.575758
0.757576 0.598485
₹ 0.40050 0.757576 0.598485
0.757576 0.598485
0.757576 0.598485
net
₹ 0.60308
earnings 0.125

rs 0.19
b/s 0.4
v 40hr 50hr v 40hr 50hr
ebit 0.435 0.53 ebit 0.435 0.53
interest 0.096 0.096 interest 0 0
profits 0.339 0.434 profits 0.435 0.53
toms share 0.339 0.434 toms sahre 0.301154 0.366923
0.692308 0.692308
 -10 npvu npvf
1.25 ₹ -0.57 ₹ 0.64 0.192
2.5 0.192
3.75 0.192
5 0.192
₹ 0.07

-10 npvu npvf

1.25 ₹ -0.57 ₹ 0.40 0.12
2.5 0.12
3.75 0.12 this is wrong, since the subidies will mean we will have to pay
5 0.12 interest at a rate less than the actual interest, here long
₹ -0.17 method will have to be used

6
0 0.18
0 0.18
0 0.18
-6 0.18
₹ 1.59 ₹ -0.60
₹ 0.99
npv ₹ 0.43
6
0 0.288
long method agrees with short method when you don’t have
0 0.288 subsidies
0 0.288
-6 0.288
₹ 1.59 ₹ -0.95
₹ 0.64
n we will have to pay
nterest, here long
used

when you don’t have

 -5 int paid principle p tax shield
1.75 5 ₹ 1.25 0.4 ₹ 0.85 0.1 ₹ -4.99
1.75 ₹ 4.15 ₹ 1.25 0.331817 ₹ 0.92 0.082954
1.75 ₹ 3.23 ₹ 1.25 0.25818 ₹ 0.99 0.064545
1.75 ₹ 2.23 ₹ 1.25 0.178652 ₹ 1.07 0.044663
1.75 ₹ 1.16 ₹ 1.25 0.092762 ₹ 1.16 0.02319

rs 0.12
npvu ₹ 1.31
npvf ₹ 0.26
apv ₹ 1.57

-5 int paid principle p tax shield value of fi b/s ratio

1.75 5 ₹ 1.25 0.4 ₹ 0.85 0.1 ₹ 6.57 ₹ 0.76
1.75 ₹ 4.15 ₹ 1.25 0.331817 ₹ 0.92 0.082954 ₹ 5.50 ₹ 0.75
1.75 ₹ 3.23 ₹ 1.25 0.25818 ₹ 0.99 0.064545 ₹ 4.32 ₹ 0.75
1.75 ₹ 2.23 ₹ 1.25 0.178652 ₹ 1.07 0.044663 ₹ 3.02 ₹ 0.74
1.75 ₹ 1.16 ₹ 1.25 0.092762 ₹ 1.16 0.02319 ₹ 1.58 ₹ 0.73
b keeps changing here. Hence b/s ratio changes. Hence wacc changes and wacc cant be used. Or need to find wacc
be used. Or need to find wacc for each time