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Tax 34%

no of shares out 1.4 million 1400000

face value of debt 5000000

Equity DEBT
market value 28000000 4650000

Req rate 13.18% 11%

0.128695 12.87%
WACC
0.123369 12.34%
RF RM premium
CMP 20 8% 7%

trading at discount 4650000

EBT
32650000
Re 13.18%

Rd 11%
debt 0.6 equity 1

Rd 15.15% Re 20%

Tax 34%

WACC 0.162496 16.25%

0 1 2 3 4 5 6
CF -50000000 12000000 12000000 12000000 12000000 12000000 12000000
DF 1 0.860218 0.739975 0.636539 0.547563 0.471023 0.405182
DCF -50000000 10322614 8879697 7638473 6570751 5652277 4862190
total 1.6 debt/equit 0.6

1 0.6

-6073998.72

₹ 43,926,001.28
NPV ₹ -6,073,998.72
amount 10400 no of shares 200

stock p1 10850 200

Cap gain 4.33%


div yield 5.77%

a percent return
10.10%

b cp gain 4.33%

c stock div yield 5.77%

d total dollar return 450 1050


cmp 52
per share
Dividends 600 3

p1 54.25
prob of exp moderate growth 0.6

prob of recession 0.2

prob of rapid expansion 0.2

expected return

Std deviation
return 8%

return 5%

return 15%

8.80%

0.033106
3.31%

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