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Corporate Finance Solved Assignment

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Added on  2021-02-20

Corporate Finance Solved Assignment

   Added on 2021-02-20

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Corporate Finance
Corporate Finance Solved Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31. Use two appropriate methods of calculating cost of equity of AstraZeneca...........................32. Calculation of cost of debt by using two appropriate methods................................................6......................................................................................................................................................73. Calculate the WACC of AstraZeneca Plc by using appropriate method.................................7CONCLUSION................................................................................................................................9...................................................................................................................................................9REFERENCES..............................................................................................................................10
Corporate Finance Solved Assignment_2
Corporate Finance Solved Assignment_3
INTRODUCTIONCorporate finance is the part of finance where organization identify the various fundingsources. It includes the capital structure, investment decision and other financial resources whichhelp the corporation to deals with it (Brealey and et.al, 2012). Corporate finance majorly focuseson maximising shareholders value with the help of long term as well as short term goals. Itwould be implemented through various strategies. Corporate finance helps the organization toidentify their values with the help of various methods. It includes the various activities fromcapital investments to investment banking for the for the future decision making process.AstraZeneca selected for the better understanding of this concept. It is British multinationalpharmaceutical and biopharmaceutical company and it was founded in 1990 in the Cambridge.Company have a combination of products for the major diseases and it includes cancer,cardiovascular, gastrointestinal, infection etc. This report includes the various topics such ascalculation of cost of equity, cost of debt with the help of different methods. In addition,Weighted average cost of capital (WACC) also required to calculate through collecting variousfinancial information from the annual report of the company. MAIN BODY1. Use two appropriate methods of calculating cost of equity of AstraZenecaCost of Equity: It is the return which required by the shareholders on their investmentsand it further helps the organization to decide whether its meet with the capital returnrequirements or not. Mostly organization use the capital budgeting for the requirement of rate ofreturns (Damodaran, 2016). There are two types of financing will be done by the organizationsuch as equity and debt financing. Leveraged firms are those which use the debt financing wherebusiness have debt finance more than equity. On the other hand, UN-leveraged firm use theequity financing which have equity more than debt. In the UN-leverage firm, sale of new stockwill not affect the profit margin because it is distributed in the large number of shareholder. Inthe leverage firm, organization fulfil their financial requirement through debt financing. Itincludes the lenders, bond holders and interest. Payment of interest will reduce the net profit aswell as cash flow. There are two methods available for calculating cost of equity, first one isdividend capitalization and another one is capital assets pricing model (CAPM). 4
Corporate Finance Solved Assignment_4

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