Crprrat. Budyehiovy . alie i I Techniques of CB v J Tracts hone Destoerteo| Metter . Cosh Flow L Pou bock, 1d > Metiods Ps Rede of wetpumn’ tater Push “ beth R ais Rak pe rea italy neta rte iret fata] (#88) We mat bod yy ¥¢ Pauace period — Eveny assel pos bate he retern -fo its nen tomied- 0 te peut Be pay becux period 4 fhe pemtod cna tte -foled Conk of tra Ome da papa) hace by the ayek ‘ 4 sin the Pluss Seba, wef fo, Coleabacke por bac pani fine Refarin “oomcent 3 Oppel - [ewe = Cost of te teced /rmversrer [err anthony pay : — un Ingle to Flow] pow. Rogulors “/enes ‘ sii Qe prajsel anf fon. pregesl 'B’ tae rvemenks anal 1,0,0% of Annual nofenn of pugeck A an B One fe spectinely, . which pnaeed ye gould daaepl » 4,.00,07 resorted - arom ond 253°" ba propel py ee period = _ |, 00,079 aye - 3t “Yeo. gt pty ben peniod = 200 og van. fox pret BPS P Se 5-7 Yeo ee ee Seanned with CamScanner Scanned with CemSeanner\ Trwe, = a. Pegjeed A Prajeed Bo as | 1 1g, ove I 5, Orv. 2, 36,07 ~ QQ ageve 53 ate 3 38,077. y 1070 y 19, 08 5 45, WO 5 gz, 070 be fo project A yen 2ye Byer yer 12,000 36,000 +47,00 F 10,07 = Tero pes bees peed = 4 yeni gen = WU yearn + 4, 32 2 yen 1 Brnonty Zyen 19,000 = 75,000 a oo pace powod= 4 oa a va) au gy yen f 10.41 roc 2 uyeon (0. Pl mont ls % project: ‘AY aco Hof ' Scenned with CamScanner Scanned with CemSeannerrLimifapion of py bace perdool I rf eyroet fine vobue Of mony, te Clit ars ivem iw fetus unde x scay hate. poring Lhe onde, tho fe a ‘ Tait yy , he ral volen of halt eben (oe Coe pat cohiod coearlf be 6 nth eh foes, QTL lgnarees Coy flow of len poy hoe pense] Anvestraowd Gyonet {00,008 Ais Bo unm Bodom, yen es ° joe “ie — | 50,00? 25 | “ww 4 Bei Ge, 0? 4 140, OTe a , 3 4%) Jo, 0% 7 3 nt l 4 50 00 4 5 eye ne 5 ne poy Bae penioo metro prseet fa the bow compl “iy ry de. renal Prefetach lta a ef bul- Coruidordy f wil be eb elf be aetialeaf Becomm bs Rodturr ampunf- a, jet PA Pining emery spot. S* pf bal peaiod mrothod — « : Ss ‘ sts coves flams OFX pag bot. Pariod pes of pat ® Comply gee Seanned with CamScanner Scanned with CemSeanneri IBA[Ie Role of Redewen Atctoel > Rede of rtafeern Hnebroals al e compares the. Redeelar proofed qerereteel by te project worthy, oy imvesbrents soo kale of Rofaan 4 e%pnesseel en Z (peaconfege ) fern, One| Tre foterwing fonrecler ch aseef fo calculate Rate of Refany, Repel Refunn Amouat < Joo } Jotel envertraced ove} of tee pngiet _— a ae ee | i Rete of Relea = 2K pincounbes|_ Cork flow > anet prick valine (ripe) Mettod = . e - won on enveslens — matees tnvertment: se me 4 Every pees en fedeurce, His & paternal heemen ney of geteny Pefacn quan te tnvertenen Ta otnen poodle ae ee Jeol by a project on ten of profit fhe Prssend cavesfment >, de rece’, mone fecfene. Cork flows gone ghald be boayghin Tham ° " ap on tes pancple nel: pratt outed } i clygned pod metro tae tory la G & chyrgncsf- Cala npv f & PIS _——— SY. eh [Reve pot ek Taflows —praterd wales of Govk, od Hows | ee oe a aie of Cdyla enflow Heid be @, 7 as vere an of flax fon. % profilebl. prajea oy Blamuld be parva. Fo Rope ay a noyobre tHe. pryeet glut be pajeeded » . Seanned with CamScanner Scanned with CemSeannerQ. NBC Rinilea is planning fo buy & mactine, Cog] of Berea 1,080. The oshinaled “ore preslittes tedare car Flrd spranalef by she Compony ane. Be 50,000 Hh yon won af yoo 1th yon! fale. Reb. Aud yor 2, 30,000 Bnd 7’ . oa BY | z ker : | bh Puget & Py P.v. of | yen com Hows factor ot BY com toms | \ 2, 0,07 0-446 ., “R037a0 i | a 1,80, 08 085Ft 15466. 5 3 1, 60,00? 0 #44 1Q4040 Bee a, EEE 36450.) Scanned with CamScanner Scanned with CemSeannerne SS a Presenl yeter of car inflow= 5 Q) 470 ) Piv of com flav = 50007 nipY _ altro Projeed B , ———_ . Rau oe y gow Cosflows ficion of 87 co fw yoou = —— 4080 \ 0,000 0 4ab 145690 : 708 0.957 /26a0 a 9, 30,078 oTdy 49400 | 5 ge yo, tlow Blatt ‘ Presser yale of fiw 500,009 ey RY of — covh ov TEegaQjo NPV = tron a . . Wi ' ie 4, Nev of puject AY ee pl we aceap ea oo PA Ree of ett an 50,07 , £ cavostment fn peat Me vay oe wa/sel vope vans. ;& 4 | au Conaflewts one. last yea os | 3 1a% 40,00 th yin yeon yim ea : | Beal yor Calculale no { ye qo,er® - 6.893 1 30,072 6.494 a go, 2 6.412 3 a 9.636 % bs oo 6-636 0, y p.ve of Corn flor — p.v. of Coie out PL?” . NPV. Dal RY Seanned with CamScanner Scanned with CemSeannerCapital Budgeting ; : ASGSONS Ore Morying cwvestmenl decision ot cop tel expenslifucs Cates} “copa Beelyeling, aa i ch tresf Lich aur a@pociates! w TTheye, once Those expench fate w b oe ass ch Ue auseds one tht ouets tual can't be od cl } 4o Cot) bawcalyy there ase Leyas| onels low, buldbirg 5 , maclincey and Facer kere. Def hrcent Forens of Capital bul ng 7 1) Expansion (a) Agution @) Replacrrerd 1) Roseercclr anal cbvelop man) eke. oe Trpoclonce [fenton / maven bogn — Wyre & lon fem envestment > . As coptel boushaeking clecision deals wit fixesl oueds y So money dnvesteal én fis fino] ames y bloows! frere on posal peu’ So this enveshond oy long teem en meters, () Requirement of huge fare > As the menses Compononls of. Reveef ossels are Lona), bur'otip Pleat , machineny ele “Tain Fnoncity heeds roe fend tran Roney, of cunnont osels. son capil bectpshing huge amount of & ey iires : eo : fed (3) Ine versoble in Nadine In copttod budagstivg clecision a buriners yes fon expanyin » adel HO , pap la Cornemt ek. SO OM tye deer grony Pinade 4 4 very diffealt fo naverte cf. Seanned with CamS canner Scanned with CemSeannerSe ST py Tt eenbes recenitmend => Jy copra buabyeling decitvom ren Jn ana cecales! and offered to diffrant group of penrle . epee Constnee fion* of hayhoory. gee jab fo peaplt- (5) Leng Foon gmpact on profefabilély —> seat ts é ions if, town prrP' UC copa budgeting alecisions ef je long las act sib of “he company on Mf conpary fo gene r Seen en be elated 42 infrastruc tenet uty Construction y Decision can 7 " / Commun 6 on at ° 7 . oe halls , bon, le AU Heese ent reost : moul of Copited bagel | deevelepment tree infer ce | t Be ou bol fo Confruble tre economic _ clawelop | fo rtacfure of | a Country. / | coprtod budtyehiney Iiques of Techwitt . _ Troslitioner} Ded Cored eal Coys fine = rey bac Rate of wd ; oa premiod rekon . cfs rn z 2 No Seanned with CamScanner Scanned with CemSeannerSlag Qtrvertnad of a project fox, A years lel yean on praeit pole cnvesfmecd anieenf 4 [,00, 000 ane] neh, por cf a 5g,000 . The Coy, Hows ant. rfc bllmaing 3 years “Bi 30,000 70, 2° , 30.00% rxpertively, Cyleulale NPV al rule Of capest Of sf? Pv. A. yeas, Coykfins — factryet PM Fem Oise |,22,08 Enver ' 59,0 0-952 446 ~The PY Covad Reluer Goo 6,907 4.3, G0 , 3. Joov 6.864 60,460 4 30, 07? 0823 ay, 640 p.v. ot coh nfl = 154,430 — Pv. of Cah od flow + 144,630 : {O,130 WP H Internal Rede of Rebun = Infernal Rale of Reberen ip the Rate of whith tre pragent welee of cash in Plows in foram of profit ; ort Rofuen = present yalue 40 cored out fimo be, investuuvas 7 TR 5 culated b hit aol hie method Ju tare Wh leraed 4 nN a anfoss an fu cormtlovs wool] ye etal: d ~ Tee - upy ag always ‘0’, Seanned with CamScanner Scanned with CemSeannerwor 2k en 6. Fee projed investment L009 RS. Te cers (lows, One QS 000 ca bef years, 35,0r0 oy Dnaf year and Y5,e0 én gael yet. Gludel? TRRI ev. AL EM “aaias Oras A050 38,410 0-%45 34,345 33,195 0-984 yo, oe SF 95430 6,430 Adie Pv 6.990 ANTS 0. 989 2 5 1,43 a oR Interpolation Jnterpolaron _ wa 10a45 “Tai \6315 ol RR v ono" . U1 96,43 pm. AEN IRR = ooi| 523 6315 | : 9.01 t 0-013 = 0-02 a3 Seanned with CamScanner Scanned with CemSeannerae ¥ Kloelepenslent projec ~ ear. iclepensled jects not ° «Frese axe te type of “Py le prajeet és on nadie rat means, Thr deletion of one enslper jection of ch going to hore any émpact on extren folechorn oS pier prageck. : \ jects ix Muley exclave REE” eh hae OA. _ eption on of pref ai ete we option on prgeck q fa er 14/alis i oh | one. project 6 | qufomnafécoully bility Jules” sal fe Profitability SES 3 beach compote * present vole lability enslen 9 nebo ee EY conti ol Flee of Co inflow oe i on fo calealals poof tee: —— ing ane fs protect vale wohene profitably rapt one Weel] BB tebe for oo crmperry * pred f ee pnt 2,00,07 ons} 3,07, pote toe Pay me Poms Pon Sf ae lado enn, drs] . Fe gum anol 4th youn ovo . goer I, Y J0,0%, |, Qo an9 Seanned with CamScanner Scanned with CemSeannerumd be acoeptel Seanned with CamS canner. A Prajecl A (aveadmend = 2, 00,07 Jen Coyafles eve foclen of tof p.vial Coes tims 4 Goo 0.904 sya" a Jone 0.826 578Q0 5 60080 So, 0-45! 4 30 ,a0v 6.693 _ aon90 Dev. of coal nfl = 19413 0 ) PV of cory bal flows ~ Q00, 9 - NPV - 4040 PI= Cag inflows _ 142930 Cons onl flees B= ie 0-464 1 y petween Pup & IRR 7 l oe pry] eof. Tnves cubode TRA Ba tee Following POY aint ia or : 0, 270 5 18 ,OP> Boon Paype \ i tus agave 7105 Seanned with CamScanner Scanned with CemSeannerTawesfreed = yo, ove br year coutiors ph woh PY pbs BA ! 5) 000 409 2QTAS 0.¢7? "4560 a 70, O-9A6 3260 0-156 84 3 em 136)8 Os asco 5,070 0663 3415 051k _ Bal 4 5, _SNI8 5 49418 , Uy At asv7. Pv O.g0d Qoocv 0. 640 eu? 6-512 gale 0-410 Q050 lm 34666 INTERPOLATION LN TERPOLATION jot us2 9 Gag os| me 40,07 J 10254 ast 34,666 : 4 HR TRR= Ol + [Ase joasa 2-oltdl! 2 aly (F, Seanned with CamScanner Scanned with CemSeanneren) Net presevd value Internal ole of Rel Net_pr . Jatecnay OS LT RR genet tno porcconlerps fe The NPV metind — Remelts in ne paaicel ¥y engcekd ; a. reapers Velie, nul & preeject dots: ep Pregi wel prscleuce : . referon thot le coal - ja- The ney matin Focuses 0M paged 2, IRR focusses} on tu p decp ses - cay flow Level of © prt b nonicexr ged: | |3. fo NPY melt] pactents on cultome 3. 1RR mettenc| deesnt polp | pet formes tre Beenelation fon on mowing fy qlidwion, Benes its 1 cnyeshrant dec'sron , dine ed riekuren cloesn't fell foe Chuesfor ens cx upess rahe. how much mney wit be rrooke . pres “f . ‘4 Gy. Tha NPV mateo Ropes The wae U. The IRR media] olnenn’t hens thes 1. worth Can be diffecsttty dunce ne godt of note of a cliscocercl male, | | | | wd ts ie pelonlys | diPhcutt fo cent, Mine maregard 9 geply lorivet frm cre onebys | fo aayest c+ spore 09 cos Flows + Seanned with CamScanner Scanned with CemSeannerepreeciatior) Lae. . , pa & D Gpinl & ing whom , i can thy Oe bayically anvl dopa coon axe gVen depraciakion omaoit | flow Onn Tn capitel .* bee hing teckvyes te afler tar cosh fot tla ccf dae rate el ond val usutd be ofequdd tes] Pron tno oe Oren “he th yates of ayoae cosh 5 aslded bate of end Caleutectee| pron Q, for. a project énvertment 4 Qlack, cork Hows gg [078 1,20,000 ans] 142,07? rorpeeninely, Sorep ’ jo,0ro pen Year, wale y Gok ane{ olepnecca tion nfy & P12 ° calcutalt : Ton . i wag ortrer) wack 5 (eh ‘ Tf counee nedsatt pv. B wale ihe iy faths u he Profit before 4 fgg elit fenton “Sera eT neo Yee couitne bef = jaws ue 6909 oe yoo 3” 0-8a6, Ml I. coe ovo YO OT. sven | 59/570 Q go,ooo ys 07° jor OF B 7 : “gos 6/0 5. 6¢3 DUEIO 3 130,009 gro gow 2,480 . yoo 90,089 For ee,0¥0 0. 683 2 1,49) ~ " " Jojoove 57 a ye ot cakod FUND” 3,580 , 4. ; eat com ee fs RR = pW oe NeV = 5,850 2,95.858 . 43, (leo Q,52, SD P-1 = Seanned with CamScanner Scanned with CemSeannerit a ’ menl for prajech A'S Gov , fon Be BUM ey poy, : ee fon 9 62,560, 8 ch (CIGD ented for projet fiz piv of cw flrs eye costae — py fake (eh py te ; a 5409 56 e1a-5 , ‘ 5 (RP — 50,002 6gia NPVE 56g1a.5 eed 5 13 >I el = Eom v. of ean fle B=. / P — fon pest puted Dg a ens 0.99 eG, wo FUE EF wpve @t%ls-2? ae , 4 ef wg con hl? cee pov feeb HIT ego ee eee 0-997 gor op oat . om gobad cae OFF, * trope : . jot 368RSTCCR-S | apgras 8152 | 50000 asaghar bays : RR : af I. 64-5 ‘ ; OL ah Osi] gt OB it f Ase gre Jo foes 0. [ TAO BF = 25 “lao TRR > Seanned with C amS canner Scanned with CemSeannerProjet ae piv. fom 257. Pe, i a fom, Io}. Ve wm fr- ee Sy Yeas Corb fle Pav. fen fo peen ate age ' Q6 140 0-924 2FU8. 53 i In dercpolation 5 fof g94ia-53 oe] TR ep ao FHB5S | guga. 53 257 469 & ~ IRR = 0.10 * [se Eug-53 ). O15. o4e9.53 = O.JOT 0.J0% = av.6l7% . - ort & Conflic] NPV beboeen IRR ee Jn tha above preeble mn project Boone a gpoalen duom IRR, But in coe of IRR prejeet “A! has piglet TR 12 Ae7- if 7H, type of Contlick aie, fued — ravester Aborto) 9 fon. highon NPY. projects , 05 tus projec Fours om yale rnanimizedion on wealth may’ cafion volutdh 9 he peal of aw Companay : # Conflict bebseen NPV ond PI mated] in Paajeet Az |,o0, 0% peajest B= 9) OP Seanned with CamS eanner Scanned with CemSeannercontin We feed Io py content go,0e 0.404 gave go, ! 9 AG 2b 088 _~ piv, of to en few 1388 C0 ont fl _ VOT ec) pu CAN Sg e5O _ 199800, [38 7) Pte 1h co fe Pack wh BE : can fee eZee 64 44 Goer ote. uO 0,07? infos No gus Ope oh es ET ce pe of Neve pour. bHE ZT ¥ - peanut of of tontuct akon else wes NPV i differnt soll be accepted « pert sat “4 would be aces pred + fo Ph. Seanned with CamScanner Scanned with CemSeannerCAPLTAL RATION ING 2a /I2 =O OO ions ‘al onef mae nermber of prenhy has limites! Cap! a vatouig fs formula ore mfr. wher a Ca projects (npv 4 posehie) in hal coe Capi 4 ing -folemer"g con be cleanly enseresioe uy wing fo, orn wv) Investment NPY Reoerte (nir sovesmes ‘C3 4j00, 08 3, 00,000 nore() ° 5 bq ceo (tee! g0,c00 36,0703) 3, 00,00°7 9 AIRE 9 5% 2s v0 gov, coe gor) B= TET 1,0, on gaceve 39,0005) E 7 2m 3, one 35, oo(y) DAA abo o> Seanned with CamScanner Scanned with CemSeannerUNIT <7, — _vorering Capit Gslomen. Fagot May beh boo i Spurn 7 Capital con be of 3 turer 1. fires) Capitol (capital) , 68 ne in Jee he ant tng ot “chy envestel ch iS Hycme| om fens i ee ‘e need fone eu (t fumebioning of berinen “ 4 candy thls capi foul % colle finance claily empeniy fal On Carcenlaling Caprtel , foul on rovelatg OP (worucirg cop Fe on fad ite b Lrool of Deknofion—. soni Jo) com be comparesl 0% sre life b - e: eri ope “Topi ecgecitn| pp Finante. Conend aigesh “the . nn cgute producto Ogoin Convo of Compara e+ which on qo w / . wore Capit ot onthe bows of Concept On faa bows of Hen uO T ' —_ Girt eC Nel .wouig Uipitu Peconic) WC Temporary wd nie a= Co Gal ome? / cA i teplee maa pe Seanned with CamScanner - Scanned with CemSeannerCouererrd Drverds 1. Coss eblers ious 20 conve lt 4 prepoiel 7p. 5.6 hae deter Tavestmadt Go treater | atol a Lrobiliter ee . Con- 10,079 capitol > 3,09,0°0 0, 000 ey ai capteh > 222" | enn 209, pebenkase ’ goo Lovol bul v x oo — 2, Good with — 10" vo Fron wan | Gt sng eee Creel > 4, 12? prapauc expense 2 een 50 ow \Q, or ivi densl pogmenl TT o 19,08, 079 fed Seanned with CamScanner Scanned with CemSeannerBK Othe bows of deme > ) Peremanerd worudns tod ©) Tempo reamy tig ah @ Percmamend wsecsxing Copital > 6) Regular worceing Capitol Regular uc & te omownd r ; which 4 blecicad in Set aaeks teal a. Com pany nainiains every time. . “uh cap l { CO Reserve _Worucing copetel = Aponk fea ragelan wong i A of fuel rnaisfain’ to moet Comhmgen ie? a Moser, jean} . : Scarceity of ‘ong material naturist callamilies eke. Ts meen © Calleo] rogers UC ~ fad) > (2) Temporare) woruting CAprn- ee ey : ; wpjeins fund’ fon "9 ia cd) gpecl an a ety cmp Comference on Some easeonch | + anf clovelapmenk prayeamans « Fmd Kop ti _& Caltech spewed WC. / C) Seopnal WiC ie when a Company ness fmf torr a p onic Season on The flow material i,° quaitodole only in a particuler = _ Seasun then tre fun] wept fon it u called] Aeasened’ Wc. when compony | erepanals cfs permanent we incon bid - femporsacay wc peomaits game the folorating grophs elasa Before Grparairt After. Gupansion Tenor wc eters permanodt vse” & peamared wie, Seanned with CamScanner - Scanned with CemSeanner: an tog? of Ade quad Worteing, Copelal . Bay lav ng. Coperae ° # T ffivend We Cerdunes Gon fratons, production prow of te ComP ae hos Um from compact on prakefabé U'ty « requ poyrent C4 be male fo supplions an creditors. a i . 4 eee oc papet of neg ot guffeiend wc ensuned P 0 wn co ‘hs emplagees « TH helps in boosting tne moral One| compleges « 4: : a suf frued: from. a bank tren howig Sh | wf fo% ae Pguion epaenh af Wan. FF ~~ ‘ oe la fue Croalit worllmens ok the Comps ot yneuited a | 1c 6 help fon tox company fu mond) . . A an Be 8 Prt Fe Ung tenn petal af he OP | tate Le tage solemn oo th In @. wee } af te Company. rick chon Preoceys P tenals “tee company en te otk jo Aepplien and) Cinslifon. . Aalory Ono wop to fre emplospes tn crooked ommong trom wi fan te onpanttadi,, reputation om tn treoubie. be conse of = A compen Oe e's oe uk Ae nosults mre lie ix | 5 vein cated opera I es ea Re \ A 8 Coe RG ithe r eas Cou. Neorg KA etrnae BR Seu makeied) Bees naff ph og Rake AC Saar ae amsSeanner Scanned with CemSeannerTy every orgoctsahin Cong rrogieo) fo P wnchion. ie ae 4 Then rou maleniol i Converts] to upon —in- prepress - woe Fee 4 Converted] fo invsled gorels . woken Frater] qr’ ane sata! 9 monet te cuustemans ane calles} dobton ond of tM enol cleb{onr | PY 0% which again urea) by tre Comping for ponder “f (as modenial aR, ogcical flow ef wonwsitg Copitad & calles womvcrey copie) apenadiny cycle . 4 shanks with cota aonel ends Wr rood Rechion aff cou . CS eee eee Uyortcinn Coppifed opera bing eye divides) anto 4 Cdleyant., C) Grass openaling cycle (Rwcp-+umpcr FGCP +ReP) WINet “operably eycle (Goce - ppp) a BQ / alle oe cating of fide geod ctoblom ~ | ee s os? | NSS Se Resomodeued prneod . Prsclucion dt : 7 aaa raf Loom tn prapeeny FF 7 a 4 f : br. because of creolt Poprsf loan & toven on pra ote. om rc el cot Fhe fone peiod a ool PDP byl cofanal r . Scanned with C amSe canner Seanned with CamScannerLS AR REIT A Se5/ tiple 267 , RMCP = Ota, Steen » af Rav meferied 36s ot dl aagten el S mafeniaf cay seempion percley S62 Cos of procte chion pe coy watt? = ANG. shoes of paonae in peabel, aes : TCP = AG. Stee of — finisbed $x RPE AMG R ecofvabl Genk @ cruebl jake pon cay ™ 75° fore 0 Pa 365 Cost of Croolit punchose perelng : 330 shin, pond coed ede ey hen oe abhi . : i 4 one ne ho. oe macleniet] osunnghin Peay panees ty Creche 47 dey eo cst of ses pen , i Bod Cost of Cn’ ut of cnet bale a cua Gack WC) 45 vipa, 38 gts = lad [0,7 Facp = ion 365 = 4004 Reps 0g. sg «365 = Al 4 ; - ee “ga00 13.45 pop= 49? 365 * noc pass #3 ad Goc cant ATS PTT: T0855 Hebe. 5° dogg, Seanned with CamScanner Scanned with CemSeannerLetiwaiols of Word Capt ted requacorend/| dactores tuo | cleleemine “fae WC raqilivenend of Comport e _AnatNladace of the unite = to oof compari ere 460% previdens (ue elecheécrty de-parchron, olen supr depen is ’ require minintumm worsing Cope fed. Hansstoctniy Orr reg wine marimem wc fon purcheat af ae owt | finamce on wore-in po Finials o , vnaainun, hei, [jue aryftteftons the raguinernan of & + Size of buxiney > I dine Size of he we reoquunenest worl oe ee ae fe dhe wc Tengu : : bung & Lay Te for, Frnt companies iS M.D. >be, } at — Soma Companies reduce vrai mii out pod + pateluckion policy =~ * oe tee. re peomae 2F Phe, clueciny POO. periods y “ han tee Companies fallow i Costs On the otren . aarll nem peli wagurnes les WC. En een a ; hy — s Lenats of pred” cycle Jn com, of ee im i 4 eis Langan. menay is -blocnesl sored fem preeduetion pro ee a} mora wit fon honk jour poued | a Lrg pene ard | ei 4 be. xcs omayp, woo (hone mi . wad slob a Seownal variation af fa a Company 229 morenl + oe Juang plialon Geen “Hen tt hereto buy cb en bul ond hoy i) Pas mainfenonce Cost infoam of gett riegh susedch me Saloy inganonee Gsdoeke- Ae oy rset wc ragpironnel Tbe S penned with CamS canner Seanned with CamScanner, Rott of Ato tunnover —> 7f (9 © Compomy “by rode of pho ery fast WC Neqeunemod iy (pu Becaws -jannmver rape, ow Fort tra fritter gency ant tomenke] “b Co1 Se the, (ompont © Where ty plot. fermen rele & Alned pyc WA 7 high Kno papel vy fucli : mart fa Company 4 off Growth of businay If te growls nol 1 2 OM] a : tate CE ex reagurtre mone WC Bub ton. sino gers wor?" fiat : Me cuanto VS TE flow] sme oy 6 how. ah “+ pobty of buyin 4 ior fa Company fam, ag a on To ‘ cst dl on Creslit ane! Aallins ae oy bunny. boy HO og eirrerent of we % De ball fr ob on fo mons Ut. mnaferiod on Coy ancl Sell fini rae ji ramon wi. bul 3k vid auity > Twill creak mort requiraanond we bw af | y Devidens| polity: la te PY dividend, | aan, tos OF ele raves ir boom Phae onel necertion | amo canner Scanned with CemSeanner. Finan cs wt HK Sounco_of Penance > 4 Bounts, uf bong teem Source. * . Shonf nen * Fase of ogutly shane copie] “In cltgensres boner? + Fostex of pre feronte Akon Gpiay + preaale crook} Tur of olobenfuri a pebunn (24 © Heme. pan «aching . + public clopesite / » Money yuck ingfeuned «plang, bate of paki t Sea . (fe-imerlment) @ Lom foun Soure sl aha inp : hi aTaen of Gapilty shoe — It reap nese ownerthi P nN sume lola and &1'5 opulent Caddo owing sient ah hace voltage howe cenchablengeo} voice in ton om $ush tion f | hight cohen @ Compary neal feena] 1.0" FF hone - I ferente _Shane.— ao ; Me wt od preferonal ght cn ~ Foy get & frxeol amount of divi end. * ne a fine af Liqwcladion they got Train principal amoenf 2 baca. / = tts a abare bak Wie bond ch, hos no ying mig. So it % cabled a agbet] >on of teounity p yee of Debentune — Debenture on bod a fmm of Lian teal canned with Camocanner Scanned with CemSeanneroF ars osife Generally —ron- hanwing fooneiat congwnalion qmarge aneunce ‘Praouyh peblic cheposile . They acegl du cleposce Pine Pp “ @ . tre fae ct fon The alevelopriond Lamune Camo) rep) waite pa lenesd, ‘ pled Tech prob Ho 6 & Cheap ounce of Prana. rhe o ' caper) mass prot? Loithoud ais frigheabiyy cd amos tie Alsaratln go, dig Faved 9 invested fon feonfier rresnvedner! af Compe cf & calles plough boon ot probit, an Maleoje> | ’ shor teen ArnutCoy —eTnclerenous Waunicete —> Sahu rend : +1 rae. Coming ane penyns one cole] clan sane Fy = : a 8 ea, ' pr ‘Of banuciy ‘Prey chanpes (oe earn ie weaned freee in a pe ‘ene ee eet Ye Ramarelis GS oon eb me ee) few S o of firone, » Treacle croolit ae Caslst 9 6 Auer Tt Seua f sued com be awuileof infor of me dn bes facility acu relervee] Rome Hime period fon Poyrend: te the Auppiier 1 . j cde a praauiclead by the Supper dusk Loordieg ausfomer “ns ackvity & P “ ‘ F » fldvonce > Fern “bon presents fwiry highs dome ae ta male Taj Balwant Porn! Caan bo vve] by OMPD On shank fem fyounte to mex) WC nocolr . oo on svebls Urry Tonirg, 9 tp & THE Pe of CollecdMy_ raceciabl) ONG P factemry > 4 Fone 2 faclonig process ol a aonb trad 4 & coiverise from buyer. swine P Malt te sp collec fre ne emplayce| on bb on Step - 14 A Tatty abe s Scanned with CemSeanner" sf rolve. Step-y Enanus vel 97 of octal Conte factor. immestiately rgd gor. pogrent SHES facdon pads tee inert ti pgs Sinan ioe Period ty ste Myc CO get ebb bare Bee SEO faction poy romani. red He Se cnt a H:e4on. ie padeem G called factors #® Mo Mamoh trsiueneeds > Money monet 's aed aed: Ahont bonrowiry oul lerslirg. FP 0 Company necols Soe Peried time - Using differd- monty mans ihe Chop ee compulyony Con annonp Peramce . (Teithary GU, Call mene, i) spat Sar a ee _——_frponctr OF orny Chl Foy Match Comsenwerhi ne TOMS : pit Appraach. 2) Apprbocl. : i pon feb mon rp 45,0" UG, 500 Heng [Matching Apprsodh i Working Copifa) ton be Rnaatis! on ” ee mn Vong fru Saunas tabding Te WC Fino ciny bbe Consicle- si . ; riafion ey oe Scanned with CemSeanneres oe 5 EDS O60 Generly ery Company —( fxd OMS Bed 7 Long tevin ouraces one seal fom financing aa awed ibe Pane “yey on malehing approach Cony foros Kou Cer 3, finee] ossof 0-5 well as peemancaf Ww. C- Hy - oth Usama evil by Knamccal eaairy Leng Hern saunter - C8 Financed rics Merl vig Stent Jerom Bouseces. econavaliiv apptieech => tm iu approach bei pesnmonced orl efempotery (ae cam be frnancoef only tri lang Heo Sou Ces atin “hes appaencn Atind “Jenn ounces of. tenance. one nal ord for Ony mason. ey Bounce & rep} oxsvele only fon emergency reonsens « fn oun. creep tn che maxin #6 jan feted “hore wll] be Faooed esiy Ug fenrn Boule « * : . he norcla . jncle oft bet” nelly ef omsestn’ ve. Off eahtolon mas Jupberd tefad wc Of o i 4 Ge paver . armel Laver} dota) oe 9 TN Seinied! we! vise Ler month e np) ur Example eeeay my and neged gates racle off tre bef and tu (owest tote we ? fain pwercage 4 caulculafes! te Oy tain porl of WY mn amd ramad'ni Frc) cy Ung eon Semen od mame) PT Firamted unig Short feo , +45 020 te ron OS ET (awed) 2 009 a finen te by Long pose wai be , Ta the month of. aan ok at Apré L er vical on by wn fouriles Onof hee Ex Tn eam ovr Ore tn SA * i AP, , Aygeoee eee) be. iy Shoot wc would be finomceo] ondy fe: Einoney trey, canned wit amo canner Scanned with CemSeannerae /2/ 15 : Di vielene} Pi aa licy rund 10 cwherg, @ Company mae priof'] af ke tae PA Cred : 7 ub ations chal ever. Toman Jolt nedtifons Arnel fo Ath aThen cP! “of onl ta elu «The Pe é calle ts cleyfarlele a@mery he Shanclut a : ’ Sha Bharchateler of coe fO™ & cde fee} ameny Aivjelend. * Forems of cliviclenel > Lastly divielene] > “he mores widlely used fore of dividensl 3 coor ciwadene| , basceatly a -huice c company pays dividend fo be Alana Fhelsleres . rat 3 caller] Taferdining dividend Bl anol me 9 Cellter final vielen tna m declonafion We Com ays To tive. asian” a teas , akon of profit ee ieo| divclenel. Some mes Corfain pom J rake FeinD caning, én fam off diviclore|, Renoir P cs Kop . Stour, dividers! = (Sones Lae) FPSime times tohen thre lop maser profit iL mecaly ue profit fon. rea investmend purpoke ¢ Bt de sakisty Hine ug ahare ho den 7 a bocinol fo Pog dividend. Tn food Caste Compeong poy sous vider! ary Bovnaeil enseet, 5 ; deg bier aed in et is bi ingae. The baton 2 3. Sond ividondl > To cuore. opency i 5 a pad of. bens traf 3 cabled Bons]. oli seal {. weal Lividtenal 77 Te. very 5 nea Ff & Pavel en fom of~ d with CamScanner Scanned with CemSeannerpf ERA Split — sone mes he manual capetalizakion f a Comper) 3 Aame but “re marwel Pree af tre pane 4 Vy high Be ak groups of investors comt acco “tne sores, pect’ igh paver eC a aed epee Caltech of hugh pees TB anwed Cf Compony gre hr se, Bp. . 3 te fm ee apt no. of shone ineneows Pat mancel copitelreah oemoin Sane. 4 fe faulowstry examplt Cleons te concaprt « veh ee pate 8 bn yn, nel ee ga aes Les Goo X guoe = [Yt ero Bille oy noyge@ex goo = IMIR”: nfo eh Defers —_ fat Gao hy shone Cop ¥ x6 ) |. : Hagen ate) 02,09 Qyor2 - ones) of Jrerce (vote 7 : Toes ot Rele vomce | Gortolm + walter. veo] fam appeals mnockeA : aeppon on Beliewe trot divitsns| sera he a Pogrend a om us poliere + ; . Feary i cnanss MI diviclams| payrrent of | feck ng potest Scanned with CemSeanner. : i thy bebrewe “ned toe + Rertdual apPoareh Jy tris app toack 4 yrbalien 4 We & enisfing ptoris holden. of fre Comp an clon! t+ omgee NS ba ’ Gorpany fos prerflele prsjecls ig ibs home| (peers 4; ‘en 4 Company Blooclel 9'T pry fre divictend hue reinvest ie coe ae nnd project. TF tue compory 7 expend loleluar con yet tras’ Fok, Brant oot re more GL the Akar Pane ul i i Bhorh . projec] 4 oes ae no such probed: f a -elond, 42 ot on “the OTe! 4 ape lalsle oteraesne 7 a Sh Compote \ ‘al ey fen esi gah we OTT anol Avickensy | . py & Hoeeggesty) , syn toes He] root home Getler “cles oie of HA * et Aer ot ad ay reloctions with te 1 of me veut a Com pony: Amemplioa —> . 1. The capted marae 4 A. Investercs behave sale 3. tafeamafion & avo! 4. fee yielurh Con witaere te mare 5. Tene o duasetiion Cost G. There 4 re Fanart dst [ vie yn 7 THenayl > MM mised argues rok pagrenk: of ab lect ane yale of a compere; Decaun. afer dividers| Pg | ag ghaoree, prot falls. zg pruhy enann| by divictrre] & off settali, by toe (am of Low prite of Hort Ws dil ced lo Srok when we Company Makan Prov T ei a ae Cidond than fore meets Jo napearoned of ccldtioned fend) poy dive a resalb no, of Share enceeary | So ee fat pon eh received in from, of. uvislertls a . So off etic] oy elecrenening Teg rocket Cer tee foliar potion for. Cobeahakion of vale of tae Compose B= BUtke) D1) , Nee canned wit amo canner s & 7 a Scanned with CemSeannereee p . Fo = Skane price tecley ore cuareal faane pre Fy = meee, af ten. 4 yeon. [Price on yer 1, D> Dividend ta year 1. Ke Cos} of agele m= 1-(€-nd)) i Actencing to tha made fuel ch wi” ge fe fash cssec ef Shanes wes The. faeces) formal + m2No. ef Shares wee to be exsecol investment reper] Te fe amount oF investmcre The Company te aig EDO pre fits cote j 2 Eorenit . eee ol ata Conpery yA - clividtene| in year . De eb ont. Be price in ff bi tee Coat formula ose by of he comporypi. Pree Grn EO) | fone an, veeely eletior ahenever. Company ee in Compote] opal? co foe fpnorkion af, He vale model 4 itke i we from. | i ny = value of He Be fod, Fe | Liniled 4 connardly bese oe Bn on ane L 1 ABC po oy didn of x Me tT HL ‘ , fat corp") * pleat 50,00 @ nek a May Apenach Aun nat te cord Paitin | Ue eyelet Of te Compt | \ ayieenel paynced « compe) wy wiked av P i Hh. Stel : a “anain 00 _p | te P= Po (14Ke) 6 . i = fool 401) — ; © = Wonk = le 5 Scanned with Cam canner Scanned with CemSeannerMm T-( een Dy) —— P = |00,000 - (sent gx) lover — Qo, v0 104 = 0,00 Tey = 469.83 nB= (ser0+ 76 769.83) [OM — - Ea) (100 ome 50m) —Ty01 \ npa= Cimyr-U J | 5164. a2) (see) ee Ke | 544. i a 50,00 | “a | ~ 7a = 499,991.48) I . wuitrond dividers] (Diz0) * witout dividers] Viet Pye lool (42) < 0-10 me “(00,070 -( Bovove — — 5000 x0) 110 = 7 454. 54° . ) 50,000 nip = [sero gst 541) 0 — (oss [40.1 . | = (SY5%:5y )na_- 59/07? phair 1-6 Sam 444. 9%. [-T as — Scanned wit amocanner Scanned with CemSeannerJy ne above example <4 tan be Cleanly Been trot dintclono! ; parent cloesn't flea} tre value of The Compr’ + Linitaton , “No martial & penfecf » we can't owe] Fax ) we Can't aweid frajacton st. ! Ne gnvesfons ane wasioned , aapolt 4 Hoong of Revo ae 1. WALTER ModE = [Pete ke Dz Dividers) . ne rate of mlunt/Ror er jum om cireasl ood e atone Keaicost of ex b/Peped capihalicakin bart weak, €> EPS . {pe De a [P ined Di= Do (149) : , read g's ROE + Rog: Raker O71 aut 7 . yu DPRE oh (09 earning. Per Shore) DPRO= Diveder re gor s ae st of equ 5 18d. & Es 1 foes fo fon, Aros pce ef DPRS. 407, SOF cod. Unk wap mete? ee a Seanned with CamScanner Scanned with CemSeanneres fo, 22h , For, po EPSEY | Role IB, Kez IBA, DPS* yer é OD= 4xue 21.6 JOR Pept leW) Ley BE (arte) me 015 | OI Ae = 0.67 F 19-2 = Qr8t @) De . : @D “x52, 4 Pe ay SB (Ha) | 1, ag4 1G = 8433 ou aaa 3.151 015 0.15 | j . Ov- 4x B= @2.8 | i 0-15 015 B® Deleeminants / paclows Aa eck's adiv. poli of @ . Lompory Aaede tater) a 1. ROR Company can pay or. may ao fn stable. livin, | RAye ef company. (o4] ‘compory 3° fo dion, 3+ Type. of Shane hololonc, (Adult people clamans| nopettoun, divide Y. Treen of Caren ( Company rene every, year probe ten 5 -Taftuadion (During oblast, Company aueid civiend) 6. Resutement of: tiquidily ti no reqtcirement “tron 4 poy i ect Len - Lf Company fos fatune ¢ aplonet fetoce me , _ Plan then é post py 2 Pe Ou 2 [U-va) goat (41-6) - SB 28H Scanned with CamScanner . Scanned with CemSeannerTreorap of relevance. of dividend Tis tear) belrevs thet dividend payment affect tre value of a sen Tie. Following) tuo ‘neonien reapreerts ti noon. wolfe’ Apprcoach —> sume bons =? pe ileal of ha from ore, fontad by rakaina YP olf aro if cloesnit use erteenal Seurce of fenel: qThe infernal rate oF alum ove! cost of capitol (mara x) of fiom ont. constont. vip he vat 3. Eonninys oma) clivilonds don't chomp. while delewnin'S : a. te fico hos a very ony Life : ue a Tesog Th paioves hak clividnd poyererd affects tre vole Lien mrocled bevel 0” toe. reo Lationyi p pefween fre fis rofuan On envestrmenk (2, TC ors] fue cost of capita eK i inn . Boh foros agh rep, then tee from Adeoule] retain he earnings "sll feo invert fs. coreninys . Se, clivieleno] paged wevte) be dere. But value of Mhont narivni bes + lias wh eK then Tee firem Houle] Poy Joos, div ore] More holdars .Afans{ P gn LAP eK y Ton marca pobue, of Manraes vik not Chong wo tec dovelaped a moctiomaticol eqpedion to osartoin te £ a Mowe whith enables fo fren fo ancive at Scanned with CemSeannerDz diviclnal per share ; rz Inferenol nate of relunn a E> fomnings per sharce. kee Cost of equity) | # Cilico or Linitaios of unlte’s “ETT spoute of hae \Retovineel Cornings con't be aed] 0 ont! ty euenyfine ee Rand K Com't be Cmstont always. &- Goreclon's Approach eustees adil Mya Gonofon hos obo developed a rraclel el le : iol Seip thak dividend deasion of te fem 4% y Live vale , martcoh poe of. Ruenes -ofc- at ub Aasseem phons —> Ik Ta fiom 4 a eqpity fren. Q. Only Rafaina] Cornings 9 uss] fon Financiny parpor- a. a & Consfont- Us eo Constond- 5 é. = my Lramala s sol for estimation of vale of o Moe iM Gonolon mModed - whore , D, = Dollty) Sv, p= Dol itg) ke-g 'a’= ROEtL hee Rateuwn on Equity 1-DPR =I ash DPR= divident pegs masid . Seanned with CamS canner Scanned with CemSeannert 5% . Ju fps rape on UC Policy entre} 8 changed Quantaly R/U fis of A077 Rs elepositee] facley coped corel be tre mate ple af ex © Year af a enberh of iad) Eo Fue SS tea) ORD BBWS Po tay RO, oveN EBIAK POW 2.422 yj.06/ = Bens 5iseo.y (FI . \0,000 , afkea 6 yeor 1A, ovv of fen [5,000 One dp be recede} hae mash i ) "xh z yea - es 6 /-) . lay ¢£ intrest Ss & fou - aleposee foelay e Poh 34 5 6 + S$ A fp } [gam 128° Be (1) P= 14,07 X 0.446 = £952 py = 15or 0 198 et) \ = [0,665 95g 4 12,665= at,454(F) ne ont Cost weihh iQ. Sowttt Ls an 157% 33.8% = OAQ349 equity an 139 ny. 19.4%. = O- han Parferane ee ih lay - SP = 0.5919 Debeor en Scanned with CamScanner Scanned with CemSeanner/ WCC a, « (1axo.ne) + (2x0- ag)tt (isyost) 6 = 13.3067. ) WACC = (15x. a3e) 470.19) + (a70.53) = 13-512 /. \ 7 Boow yale — ACL (BV, \ Yy, 92,070 1s/. (3,0 My 10,0902 [gy | reer if hese | a. premise 0. “peben * oot af eae ent B. issued Fox ete gone ake femaining omer Company % . , oe on ti fe Box ab a ctecnenl at iy. of ee cance of aoe MAE RU ue . Teh get teabene Caer & (0,060,057 Gero “os ‘ 5/ or. , . 1A = 6% mp ae we ak . ne? 05 x ae , b3 6. 0909 %46 fount 6 "e 0. Ce eer . es 4.3397 0,8" Seanned with CamScanner Scanned with CemSeanner ie,