Hindustan Unilever Limited (HUL) was set up in 1933. It completed 75 years of operations in India on 17 October 2007. HUL's business areas include home and personal care. foods and beverages. industrial. agricultural and other products. It is one of the largest producers of soaps and detergents in India. The company has grown organically as well as through acquisitions.

HUL places equal focus on serving both the employees and the shareholders. and it is committed to add value to both. Over years. the company has built diversified portfolio of powerful brands, a number of them being household names. The company requires the cost of capital estimates for evaluating its acquisitions, investment decisions and the performance of Its businesses and for determining the value added to shareholders. It needs to develop a methodology of calculating costs of equity and debt and determine the weighted average cost of capital.

HUL's Performance

Table 9.1.1 contains HUL's share price and market capitalization. The company has been paying dividends regularly. HULs shares have enjoyed high price in the stock market. The company's sales and assets have shown significant growth. and company's profitability has also increased over years (Table 9.1.2). The company is conservatively financed (Table 9.1.2).