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As an Investment Banker your client, Alpha Limited is looking at a restructuring its business. You extract the following data from the financials of the company.
Particulars Rs. Crs.
Equity capital (Face value Rs. 10) 1,000.00
Debentures (@ 12%) 400.00
Long Term unsecured loan (@15%) 200.00
Total 1,600.00
The company has been paying a dividend of 20% per annum (historically). The stock of LMN Limited is listed at Rs. 20 on the NSE.
You are required to
a. Compute the cost of Equity capital
b. Weighted Average cost of capital of Alpha Limited.
Detailed calculation is required
Mr. Nazri saves RM500 at the beginning of each year. He receives an interest of 3% each year. Find the total amount of savings including the interest after 20 years.
Jeremy was charged interest of $158 for a loan amount of $3,000 that she borrowed for 170 days. What annual rate of simple interest was charged?
Shoe keeper had bought 100 footballs for ph.30.00 each.One football player comes and bouhgt 10 footballs for 50.00 each. Calculate the cost of goods sold. Show your solution
Syazana inherits RM25 000 in April 2012. She invests the money at an interest rate of
2.7% per year. What is the value of her investment in April 2025?
Mr. Nazri saves RM500 at the beginning of each year. He receives an interest of 3% each year. Find the total amount of savings including the interest after 20 years
A monopoly operates three plants with total cost schedules
TC1 = 40 + 0.1q1 + 0.04q2
TC2 = 18 + 3q2 + 0.02q2 2
TC3 = 30 + 4q3 + 0.01q2 3
and faces the market demand schedule p = 250 − 2q where q = q1 + q2 + q3
Set up the profit function and then use it to determine how much the firm should make in each plant to maximize profit, using the Hessian to check that second-order conditions are met.
#340153 on Dec 2023