Cost of preference equity-irr , Financial Management

Assignment Help:

1. Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%.

2. A Firm can invest Rs. 10,000 in a project with a life of three years.

The projected cash inflow are as follows:

Year	1	2	3
Cash inflows(Rs.)	4,000	5,000	4,000

The cost of capital is 10 % p.a. Should the investment be made ?

[ Hint : DCF @ 10%, for 1^st year =0.909, for IInd year = 0.826, IIIrd Year = 0.751 ]

Write short notes on the following:

3. IRR

4. Cost of preference Equity

Related Discussions:- Cost of preference equity-irr

Evaluate cost of irredeemable debt subsequent to tax, Q. Evaluate Cost of I...

Q. Evaluate Cost of Irredeemable Debt subsequent to tax? Cost of Irredeemable Debt subsequent to tax: - When a company utilizes debt as a source of finance then it saves a cons

Important areas of personal financial management, Gary and Joyce Yau, both ...

Gary and Joyce Yau, both 30, last month bought their dream house in London, Ontario. The purchase price was $450,000 plus addition fees such as taxes, legal fees, administration fe

Describe the general pattern of cash flows, Describe the general pattern of...

Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows as of a bond with a positive coupon rate consist of periodic interest payments an

What was the first argument against traditional approach, What was the firs...

What was the first argument against traditional approach The first argument against traditional approach was based on its emphasis on issues relating to procurement of funds by

Explain and discuss the hedging strategies using futures, Question: (a)...

Question: (a) Explain and discuss the hedging strategies using futures (b) Boeing (an American company) delivered on 1st September 2008 an airplane to a Canadian company.

Describe the dividend yield method, Q. Describe the Dividend Yield Method? ...

Q. Describe the Dividend Yield Method? Dividend Yield Method: - This process is based on the assumption that when an investor invests in the equity shares of a company he expec

Operating cycle, how can an operating cycle be applied to a poultry busines...

how can an operating cycle be applied to a poultry business

Traditional approach of financial management, Q. Traditional Approach of Fi...

Q. Traditional Approach of Financial Management? Traditional Approach: - Under this schema the role of financial management was limited to the procurement of funds on suitable

Caselet 2, SUGGESTION REGARDING CREDIT LIMIT. SHOULD IT BE APPROVED OR NOT,...

SUGGESTION REGARDING CREDIT LIMIT. SHOULD IT BE APPROVED OR NOT, WHAT SHOULD BE THE AMOUNT OF CREDIT LIMIT THAT ELECTRONICS GIVE TO BOOTH PLASTICS

Illustrate about foreign exchange earnings, Q. Illustrate about foreign exc...

Q. Illustrate about foreign exchange earnings? In theory foreign exchange earnings must not be hedged as the chances of an adverse movement are equivalent to those of a favoura

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages