TYBAF-FM-III SET 2
TYBAF-FM-III SET 2
1. WACC
2. Cost of Debt
3. Cost of Equity
4. Operating Capital
5. Market Value Added
1. (a)The Current market Capitalization of a business is Rs 10 crores and the Invested Capital is Rs 7
Crores. Find out the Market Value Added.
(b)Find out EVA if the Net Operating Profit after Tax is 500000rs and the Capital Charge is Rs 475000.
(b) Find Out The Book Value Of Shares If The Net Assets Are Rs 1500000 And The Nos Of
Outstanding Shares Is Rs 100000.
3. Find out the present value of lease rent to be paid if the company is planning to take an asset of Rs
100000 on lease with a lease rent of 35000 pa with a tax benefit of 30% and the asset is depreciated
@10% p.a with the present value factor of 15%.