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    Practice Q (WACC)

    Uploaded by

    Divyam Garg
    This document contains 17 questions with financial calculations related to bonds, stocks, dividends, costs of equity and debt, and weighted average cost of capital (WACC). For each question, key details like principal, maturity, coupon rates, interest rates, dividends, earnings, prices, betas, and proportions are provided to calculate values like bond prices, share prices, costs of equity and debt, and WACC.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Practice Q (WACC)

    Uploaded by

    Divyam Garg
    20 views3 pages
    This document contains 17 questions with financial calculations related to bonds, stocks, dividends, costs of equity and debt, and weighted average cost of capital (WACC). For each question, key details like principal, maturity, coupon rates, interest rates, dividends, earnings, prices, betas, and proportions are provided to calculate values like bond prices, share prices, costs of equity and debt, and WACC.

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    © © All Rights Reserved

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    This document contains 17 questions with financial calculations related to bonds, stocks, dividends, costs of equity and debt, and weighted average cost of capital (WACC). For each question, key details like principal, maturity, coupon rates, interest rates, dividends, earnings, prices, betas, and proportions are provided to calculate values like bond prices, share prices, costs of equity and debt, and WACC.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    20 views3 pages

    Practice Q (WACC)

    Uploaded by

    Divyam Garg
    This document contains 17 questions with financial calculations related to bonds, stocks, dividends, costs of equity and debt, and weighted average cost of capital (WACC). For each question, key details like principal, maturity, coupon rates, interest rates, dividends, earnings, prices, betas, and proportions are provided to calculate values like bond prices, share prices, costs of equity and debt, and WACC.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Q-1

    Principal 1000.00 1000.00 1000.00


    Maturity 20.00 20.00 20.00
    Coupon Rate 0.08 0.08 0.08
    Coupon Amount 80.00 80.00 80.00
    Interest Rate 0.08 0.10 0.06
    Bond Value 1000.00 828.41 1231.15

    Q-2
    Principal 1000.00 1000.00
    Maturity 20.00 15.00
    Coupon Rate 0.08 0.10
    Coupon Amount 80.00 100.00
    Interest Rate 0.12 0.12
    Bond Value 699.07 926.42

    Q-3
    Principal 1000.00
    Maturity 20.00
    Coupon Rate 0.08
    Coupon Amount 80.00
    Interest Rate 0.10
    Bond Value 828.41

    Q-4 10 years ahead


    Annual Dividend 2.00 3.26
    Growth Rate 0.05 0.05
    Re 0.12 0.12
    Share Value 28.57 46.54

    Q-5
    Annual Dividend 2.36
    Growth Rate 0.02
    Re 0.08
    Share Value 39.33

    Q-6
    Principal 1000.00 1000.00
    Maturity 20.00 10.00
    Coupon Rate 0.10 0.10
    Coupon Amount 100.00 100.00
    Interest Rate 0.10 0.10
    Bond Value 1000.00 1000.00

    Q-7
    Principal 1000.00
    Maturity 20.00
    Coupon Rate
    Coupon Amount 80.00
    Interest Rate 6.22%
    Bond Value 1200.00

    Q-8
    Earnings 20.00
    ROE 14%
    Equity 142.86
    Retention Ratio 60.00%
    Growth Rate (g) 8.40%
    Next year earnings 21.68

    Q-9
    Po 20.00
    Dividend 1.00
    P1 22.00
    Expected Div. Yield 5%
    Expected Capital Gain 10%
    Equity Cost of Capital 15%

    Q-10
    Po 22.00
    Dividend 0.88
    P1 23.54
    Expected Div. Yield 4%
    Expected Capital Gain 7%
    Equity Cost of Capital 11%

    Q-11
    Dividend 2.00
    Equity Cost of Capital 0.15
    Price of share 13.33

    Q-12
    Dividend yield 1.5%
    Equity cost of fallacy 8.0%
    Growth rate 6.5%

    Q-13
    Rudolph stock 25.00

    Q-14
    13.68%
    Q-15
    19.35%

    Q-16
    Debt proportion 0.25
    Equity proportion 1.00
    Equity Beta 1.15
    Debt Beta 0.30
    Risk free return 0.06
    Market Premium 0.10
    Tax Rate 0.35

    Cost of Equity 0.18


    Cost of debt 0.08
    WACC 0.19

    Q-17
    Debt proportion 1.00
    Equity proportion 1.00
    Equity Beta 1.29
    Debt Beta 0.30
    Risk free return 0.07
    Market Premium 0.06
    Tax Rate 0.35

    Cost of Equity 0.15


    Cost of debt 0.08
    WACC 0.23

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