FM Assignment Questions
FM Assignment Questions
% 10%
DebtPreference
% Fixed
Shares
Variable
Costs
% (Rs)Cost
Selling
per Unit
Price
Actual
(Rs)
per Unit
Production
(Rs)Income
(Units)
Tax Rate %
A 60 40 0 38000 0.5 1 100000 40
B 40 60 0 38000 0.5 1 100000 40
C 35 50 15 38000 0.5 1 100000 40
Component
Book Value (Rs
Market
Lakhs)
Dividend/Yield/Interest
Price (Rs) GrowthRate
Rate
(%)
Tax
(%) Rate (%)
Equity Shar 4 64.25 8 5 30
18% Prefer 3 90 18 30
Retained E 1 30
12.5% Deb 8 95 12.5 30
12% Term 4 12 30
Firm
OperatingDebenture
ProfitInterest
(Rs)Amount
Rate on
(Rs)Debentures
Tax
Equity
Rate(%)
Capitalization
(%) Rate (%)
X 600000 2000000 8 45 10
Y 600000 0 45 10