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1. Calculate the value of share from the following information: Profit after tax of the company * 290 crores Equity capital of company { 1,300 crores Par value of share 40 each Debt ratio of company (Debt/ Debt + Equity) 27% Long run growth rate of the company 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share { 47 Depreciation per share { 39 { 3.45 per share Change in Working capital

1. Calculate the value of share from the following information: Profit after tax of the company * 290 crores Equity capital of company { 1,300 crores Par value of share 40 each Debt ratio of company (Debt/ Debt + Equity) 27% Long run growth rate of the company 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share { 47 Depreciation per share { 39 { 3.45 per share Change in Working capital

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Calculate the value of share from the following information: Profit after tax of the company 3 290 crores Equity capital of company * 1,300 crores Par value of share { 40 each Debt ratio of company (Debt/ Debt + Equity) Long run growth rate of the company 27% 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share 47 * 39 { 3.45 per share Depreciation per share Change in Working capital
Transcribed Image Text:1. Calculate the value of share from the following information: Profit after tax of the company 3 290 crores Equity capital of company * 1,300 crores Par value of share { 40 each Debt ratio of company (Debt/ Debt + Equity) Long run growth rate of the company 27% 8% Beta 0.1; risk free interest rate 8.7% Market returns 10.3% Capital expenditure per share 47 * 39 { 3.45 per share Depreciation per share Change in Working capital
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