Monthly

Per quarter

Weekly

Daily
 Financial feasibility study

A- In systematic
(Uncovered/next and
Fractional unsystematic
s.cash flow)*12
(recovered years) Whole number part*30 cash flow
B- In systematic
cash flow
ONLY

A- In systematic and
unsystematic cash flow NPV= ∑ PV(CF) – Initial investment

𝟏
𝐂𝐅⟮𝟏− ⟯
B- In systematic cash flow ONLY (𝟏+𝐫)𝐭
NPV=
𝐫
 Source Cost of capital Weight WACC
A- Dividends model:
𝑫𝟏 𝑫 ∗(𝟏+𝒈)
𝑷𝟎 = 𝒓−𝒈 = 𝟎 𝒓−𝒈 Where g=sustainable growth rate(SGR)→SGR=ROE*(1-
A Cost * A =E
dividends)
1- Common stocks 𝑫
(CS) So, r = 𝑷𝟏 + 𝒈
𝟎
Capital B- Capital assets pricing model (CAPM model):
sources Required rate of return(R.R.R) = 𝑹𝒇 + 𝜷 (𝑹𝒎 − 𝑹𝒇 ) A Cost * A=E
Where, 𝑅𝑓 is risk free rate – 𝛽 is systematic risk - 𝑅𝑚 is market return index
2- Preferred 𝑫 (𝒂𝒇𝒕𝒆𝒓 𝒕𝒂𝒙)
𝑹𝒑 =
stocks 𝑷𝟎 B Cost * C=F
(PS)
3- Bonds Cost of bond(after tax) = Cost of bond(before tax) * ( 1 – tax rate) C Cost * D=G
4- Long term debt Bank interest rate D Cost * E=H
Total cost of capital : WACC = E+F+G+H
Financial planning