use financial statment of I. C. I. Pakistan Ltd.

WEIGHTED AVERAGE COST OF CAPITAL 1. Prepare an excel spreadsheet that will: i. Compute a firm's weighted average cost of capital. ii. Determine how much financing will come from the various component sources. iii. Split common equity into internal and external components and adjust the weighted average cost of capital of various levels of internal equity availability. iv. How can the Capital Asset Pricing Model (CAPM) be used to estimate the cost of capital for a real investment decision? [hint: Rr+B(Rm - RO). V. 2. You will need the following input cells: i. Par value of bonds ii. Coupon rate paid by bonds iii. Time to maturity of bonds iv. Price of bonds Preferred stock dividend (DP) vi. Preferred stock price (PP) vii. Preferred stock flotation costs (FP) viii. Current common stock dividend (Do) ix. Common stock price (Po) X. Common stock growth rate (8) xi. Common stock flotation cost (Fs) xii. Tax rate (1) xiii. Total amount of financing needed xiv. Internal equity available xv. Capital structure (debt, preferred stock and common stock) WEIGHTED AVERAGE COST OF CAPITAL 1. Prepare an excel spreadsheet that will: i. Compute a firm's weighted average cost of capital. ii. Determine how much financing will come from the various component sources. iii. Split common equity into internal and external components and adjust the weighted average cost of capital of various levels of internal equity availability. iv. How can the Capital Asset Pricing Model (CAPM) be used to estimate the cost of capital for a real investment decision? [hint: Rr+B(Rm - RO). V. 2. You will need the following input cells: i. Par value of bonds ii. Coupon rate paid by bonds iii. Time to maturity of bonds iv. Price of bonds Preferred stock dividend (DP) vi. Preferred stock price (PP) vii. Preferred stock flotation costs (FP) viii. Current common stock dividend (Do) ix. Common stock price (Po) X. Common stock growth rate (8) xi. Common stock flotation cost (Fs) xii. Tax rate (1) xiii. Total amount of financing needed xiv. Internal equity available xv. Capital structure (debt, preferred stock and common stock)