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alculate the cost of capital of the company based on publicly available information. ( 8 marks ) For cost of equity if you make use
alculate the cost of capital of the company based on publicly available information. marks
For cost of equity if you make use of CAPM, then take a ready beta and please mention the source. You can also take the Beta from multiple sources and use their average figure as Beta In case of unlisted or private limited companies take beta as
For the riskfree return use the yield on year Govt bonds ie
Assume the market return at
If any other method is used for calculating the cost of equity, make assumptions accordingly. Explain
the method used in brief eg earnings growth method etc.
Calculate the cost of debt from the financial statements Interest total debtensure you calculate
the average value of debt, ie the average of the current year in consideration and the previous
financial year
Calculate the tax rate Tax PBT
Do it for any public listed company
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