Corporate Finance - Assignment

   

Added on  2020-05-28

9 Pages1402 Words28 Views
Running head: CORPORATE FINANCECorporate financeName of the studentName of the universityStudent IDAuthor note
Corporate Finance - Assignment_1
1CORPORATE FINANCETable of ContentsAnswer a.....................................................................................................................................2Answer b....................................................................................................................................3Answer c.....................................................................................................................................5Answer d....................................................................................................................................7Reference....................................................................................................................................8
Corporate Finance - Assignment_2
2CORPORATE FINANCEAnswer a.Value of shares = 30,000,000 * $ 42 = $ Determination of weighted average cost of capital for CWCCost of equity –Ke = Rf + β (Rm – Rf) (Magni 2015)Where, Ke = cost of equityRf = Risk free rate = 3.5%Β = Beta = 2.639Rm = Market return = 12.52%Therefore,Ke = 3.5 + 2.639 * (12.52 – 3.5) = 3.5 + 23.8038 = 27.3038%Therefore, Ke or cost of equity = 27.3038%Cost of bond –Annual interest rate = 10% * 2 = 20%Maturity = 20 yearsPresent value = 50,00,000 * $ 92.34 = $ 46,17,00,000
Corporate Finance - Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Sample Assignment on Corporate Finance
|10
|1478
|25

(Solution) Corporate Finance - Assignment
|9
|1061
|26

Corporate Finance Assignment PDF
|9
|764
|111