Use Capital Assets Pricing Model (CAPM) to estimate its cost of Equity Cost of Equity = Risk-Free Rate+(Market Rate - Risk-Free Rate) x Beta; For Market Return use BSE SENSEX (data is provided) and take risk-free rate as 6.65% per annum. For calculating the Market Annual Return from Daily returns, use 250 as the number of working days. Also, use the following formula to calculate return from prices Return = [(Price today Price of the previous day)/ Price of the previous day] Required:

a) Valuation of the Company using Dividend Discount Model (use only constant growth model) Dividend Data is given in the attached EXCEL file. While calculating the intrinsic value of NTPC share, use the formula g = Return on Equity Retention Rate to calculate the growth rate. After the calculation of growth rate then compute valuation using the Dividend Discount Model.

1 YEAR Company Name NTPC Limited 2 2010 DIVIDEND RATE 38.0% 38.0% FACE VALUE Rs.10 Rs.10 3 2011 4 2012 40.0% Rs.10 5 2013 57.5% Rs.10 Rs.10 6 2014 57.5% 7 2015 25.0% Rs.10 8 2016 33.5% Rs.10 2017 47.8% Rs.10 9 2018 51.2% Rs.10 10 11 2019 60.8% Rs.10 12 2020 31.5% Rs.10 SELECTED FINANCIAL INFORMATION (Crore) 2015-16 2019-20 2018-19 2017-18 2016-17 90,307.43 1,872.13 92,179.56 83,452.70 1,755.25 85,207.95 78,273.44 1,068.86 79,342.30 70,843.81 1,165.35 72,009.16 47,572.19 43,798.59 97,700.39 2,778.02 1,00,478.41 54,241.82 2,776.44 4,925.60 8,663.81 29,870.74 8,622.85 21,247.89 6,781.97 14,465.92 52,493.74 2,713.68 4,779.89 7,548.63 24,643.62 7,254.36 17,389.26 4,716.74 12,672.52 48,315.47 1,313.51 4,734.67 7,421.73 23,422.57 7,098.86 16,393.71 3,984.25 12,339.46 3,581.65 5,576.49 19,052.43 5,172.34 13,890.09 3,296.41 10,583.68 12,672.52 (2,918.71) 15,591.23 (3,841.34) 11,749.89 (201.87) 11,548.02 4,922.55 1,000.49 5,826.85 12,339.46 5,257.14 7,082.32 3,260.85 10,343.17 (14.48) 10,328.69 4,040.28 816.40 5,486.49 4,324.60 5,092.38 22,353.13 5,920.82 16,439.31 3,597.20 12,835.11 (782.95) 12,052.16 2,930.82 9.121.34 263.92 9,385.26 (203.38) 9,181.88 3,595.03 127.79 5,062.44 10,583.68 (173.83) 10.757.51 12.09 10,769.60 (58.63) 10,710.97 2,762.24 562.32 7,445.04 Revenue Revenue from operations Other income Total revenue B Expenses Fuel Energy purchased for trading Employee benefits expense Other expenses Profit before depreciation, finance cost and tax Depreciation, amortization and impairment expense Profit before finance cost and tax Finance costs Profit before exceptional items tax and regulatory deferral account balances Exceptional Items (+) income/(-) loss Profit before tax Total Tax expense Profit for the year before regulatory deferral account balances Net movement in regulatory deferral account balances (net of tax)** Profit for the year Other comprehensive income/(expense) for the year (net of income tax) Total comprehensive income for the year Dividend Dividend tax Retained profit C Assets Property, plant & equipment Capital work-in-progress Intangible assets Intangible assets under development Total Fixed Assets (Net block) Investments in Subsidiaries, JVs & Others (Non-current) Other non-current financial assets Other non-current assets Current assets Regulatory deferral account debit balances Total Assets D Liabilities Borrowings Non-current borrowings Current maturities of non-current borrowings Total borrowings Other Non-current liabilities Current liabilities I pee Current maturities of noncurrent hour winge Net Current liabilities Deferred Revenue Regulatory deferral account credit balances E Net-worth Equity Other Equity Networth Networth excluding Fly ash utilisation reserve fund & Corporate social responsibility (CSR) reserve Total Liabilities 14,465.92 9,181.95 5,283.97 4,828.84 10,112.81 (327.22) 9,785.59 2,968.37 607.80 6,536.64 1,56,273.02 73,066.76 538.28 292.52 2,30,170.50 26,400.89 2,025.42 11,122.62 48,825.18 9,122.76 3,27,667.45 1,25,290.68 90,808.89 329.94 397.80 2, 16,027.31 13,145.94 1,968.67 13,269.30 42,133.74 3,406.00 2,90,750.96 1,19,427.57 78,606.91 331.60 469.36 1,98,035.44 10,047.48 2,288.53 11,547.73 36,731.25 8,381.66 2,67,832.09 97,443.34 81,921.82 293.02 434.63 1,00,092.81 8,248.11 2,440.36 16,852.53 28,420.85 5,450.67 2,41,505.33 91,499.36 66,205.59 273.89 217.61 1,50, 196.45 8,014.32 1,534.30 17,636.80 29,756.45 SELECTED FINANCIAL INFORMATION 2,15,138.32 1,46,538.70 6,154.92 1,52,693.62 9,449.92 54,866.85 15400 48,711.93 3,242.54 1,19,698.08 7.732.40 1,27,430.48 6,151.34 55,354.00 7.730 un 47,621.60 2,139.37 1,08,697.60 6,406.69 1,15,104.29 12,716.06 42,554.76 6,4h l 36,148.07 2,085.90 97,339.28 6,500.37 1,03,839.65 9,153.62 36,177.32 6,500 37 29,676.95 2,121.14 482.74 85,096.95 6,730.79 91,827.74 4,645.94 31,758.74 730 70 25,027.95 2,047.34 295.65 9,894.56 1,03,674.88 1,13,569.44 1,12,980.96 3,27,667.45 9,894.56 97,513.61 1,07,408.17 1,06,771.54 2,90,750.96 8,245.46 93,532.31 1,01,777.77 1,01,146.56 2,67,832.09 8,245.46 87,985.77 96,231.23 95,674.55 2,41,505.33 8,245.46 83,048.24 91,293.70 90,815.49 2,15,138.32 1 YEAR Company Name NTPC Limited 2 2010 DIVIDEND RATE 38.0% 38.0% FACE VALUE Rs.10 Rs.10 3 2011 4 2012 40.0% Rs.10 5 2013 57.5% Rs.10 Rs.10 6 2014 57.5% 7 2015 25.0% Rs.10 8 2016 33.5% Rs.10 2017 47.8% Rs.10 9 2018 51.2% Rs.10 10 11 2019 60.8% Rs.10 12 2020 31.5% Rs.10 SELECTED FINANCIAL INFORMATION (Crore) 2015-16 2019-20 2018-19 2017-18 2016-17 90,307.43 1,872.13 92,179.56 83,452.70 1,755.25 85,207.95 78,273.44 1,068.86 79,342.30 70,843.81 1,165.35 72,009.16 47,572.19 43,798.59 97,700.39 2,778.02 1,00,478.41 54,241.82 2,776.44 4,925.60 8,663.81 29,870.74 8,622.85 21,247.89 6,781.97 14,465.92 52,493.74 2,713.68 4,779.89 7,548.63 24,643.62 7,254.36 17,389.26 4,716.74 12,672.52 48,315.47 1,313.51 4,734.67 7,421.73 23,422.57 7,098.86 16,393.71 3,984.25 12,339.46 3,581.65 5,576.49 19,052.43 5,172.34 13,890.09 3,296.41 10,583.68 12,672.52 (2,918.71) 15,591.23 (3,841.34) 11,749.89 (201.87) 11,548.02 4,922.55 1,000.49 5,826.85 12,339.46 5,257.14 7,082.32 3,260.85 10,343.17 (14.48) 10,328.69 4,040.28 816.40 5,486.49 4,324.60 5,092.38 22,353.13 5,920.82 16,439.31 3,597.20 12,835.11 (782.95) 12,052.16 2,930.82 9.121.34 263.92 9,385.26 (203.38) 9,181.88 3,595.03 127.79 5,062.44 10,583.68 (173.83) 10.757.51 12.09 10,769.60 (58.63) 10,710.97 2,762.24 562.32 7,445.04 Revenue Revenue from operations Other income Total revenue B Expenses Fuel Energy purchased for trading Employee benefits expense Other expenses Profit before depreciation, finance cost and tax Depreciation, amortization and impairment expense Profit before finance cost and tax Finance costs Profit before exceptional items tax and regulatory deferral account balances Exceptional Items (+) income/(-) loss Profit before tax Total Tax expense Profit for the year before regulatory deferral account balances Net movement in regulatory deferral account balances (net of tax)** Profit for the year Other comprehensive income/(expense) for the year (net of income tax) Total comprehensive income for the year Dividend Dividend tax Retained profit C Assets Property, plant & equipment Capital work-in-progress Intangible assets Intangible assets under development Total Fixed Assets (Net block) Investments in Subsidiaries, JVs & Others (Non-current) Other non-current financial assets Other non-current assets Current assets Regulatory deferral account debit balances Total Assets D Liabilities Borrowings Non-current borrowings Current maturities of non-current borrowings Total borrowings Other Non-current liabilities Current liabilities I pee Current maturities of noncurrent hour winge Net Current liabilities Deferred Revenue Regulatory deferral account credit balances E Net-worth Equity Other Equity Networth Networth excluding Fly ash utilisation reserve fund & Corporate social responsibility (CSR) reserve Total Liabilities 14,465.92 9,181.95 5,283.97 4,828.84 10,112.81 (327.22) 9,785.59 2,968.37 607.80 6,536.64 1,56,273.02 73,066.76 538.28 292.52 2,30,170.50 26,400.89 2,025.42 11,122.62 48,825.18 9,122.76 3,27,667.45 1,25,290.68 90,808.89 329.94 397.80 2, 16,027.31 13,145.94 1,968.67 13,269.30 42,133.74 3,406.00 2,90,750.96 1,19,427.57 78,606.91 331.60 469.36 1,98,035.44 10,047.48 2,288.53 11,547.73 36,731.25 8,381.66 2,67,832.09 97,443.34 81,921.82 293.02 434.63 1,00,092.81 8,248.11 2,440.36 16,852.53 28,420.85 5,450.67 2,41,505.33 91,499.36 66,205.59 273.89 217.61 1,50, 196.45 8,014.32 1,534.30 17,636.80 29,756.45 SELECTED FINANCIAL INFORMATION 2,15,138.32 1,46,538.70 6,154.92 1,52,693.62 9,449.92 54,866.85 15400 48,711.93 3,242.54 1,19,698.08 7.732.40 1,27,430.48 6,151.34 55,354.00 7.730 un 47,621.60 2,139.37 1,08,697.60 6,406.69 1,15,104.29 12,716.06 42,554.76 6,4h l 36,148.07 2,085.90 97,339.28 6,500.37 1,03,839.65 9,153.62 36,177.32 6,500 37 29,676.95 2,121.14 482.74 85,096.95 6,730.79 91,827.74 4,645.94 31,758.74 730 70 25,027.95 2,047.34 295.65 9,894.56 1,03,674.88 1,13,569.44 1,12,980.96 3,27,667.45 9,894.56 97,513.61 1,07,408.17 1,06,771.54 2,90,750.96 8,245.46 93,532.31 1,01,777.77 1,01,146.56 2,67,832.09 8,245.46 87,985.77 96,231.23 95,674.55 2,41,505.33 8,245.46 83,048.24 91,293.70 90,815.49 2,15,138.32