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Calculate the value of Hindustan Beverage Limited using Adjusted Present value method. The following details are available from various sources. The current 10-year bond yield
Calculate the value of Hindustan Beverage Limited using Adjusted Present value method. The following details are available from various sources. The current 10-year bond yield is 7%, the average return expected from the market is 15%, beta is 1.1, debt equity ratio is 65%, cost of bankruptcy is 33%, the present debt is Rs 1,200 mn, tax rate is 25%, the probability of default is 12%, stable growth rate expected is 4%, and Current year FCFF is Rs 240 mn.
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