Cost of Capital - FM Question. - Students

Cost of Capital - FM Question.

Page no : 2

(Guest)

i still cant understand..

plz help me...

plz show detailed workings

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Sunshine (Helping All) (10575 Points)
Replied 08 October 2010

this is the detailed working only..u just need to multiply the figures with the assumed discounted rates (18% and 19% and do interpolation)...ask me if there's any problem...what point u dont understand??

Manoj jain (Intern) (535 Points)
Replied 08 October 2010

Agreed with Sneha.. correct answer is 18.11%

1 Like

Sunshine (Helping All) (10575 Points)
Replied 08 October 2010

@ freak guy...dont try to read and understand...solve it urself and apply the process...then u will be able to do it...apply interpolation here...

CA Nagendra (CA) (1788 Points)
Replied 08 October 2010

I think "freak guy" and all other friends got his answer.

Sneha bagla is 100% correct toward her approach. However, if any one have still confusion about calculation part, you can see this detail calculation.

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Sunshine (Helping All) (10575 Points)
Replied 08 October 2010

thanx for uploading this sir.........

CA Nagendra (CA) (1788 Points)
Replied 08 October 2010

I think earlier calculation is not visible clearly.

You can down load the same solution as suggested in earlier post from the attachment.

Attached File : 31 dividend policy question.pdf downloaded: 173 times

CA Nagendra (CA) (1788 Points)
Replied 08 October 2010

Originally posted by : Sneha Bagla
	thanx for uploading this sir.........

Wel come sneha bagla

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 09 October 2010

Ok. But, how Po=1.2*PVIF(Ke,1)+..........+(2.488+P5)PVIF(Ke,5) ?????? Also, if Price of share isn't changing, then why can't we put the value in P5=2.737/(Ke-0.10).