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

Operating cycle., operating cycle in vegetable growing business in uganda.....

operating cycle in vegetable growing business in uganda..

Explain the term phishing, QUESTION (a) (i) Describe briefly two potent...

QUESTION (a) (i) Describe briefly two potential E-Banking risks that may have an adverse impact on banks. (ii) Outline some measures to control these two risks. (b) Outli

Equity instruments, QUASI-INSTRUMENTS These instruments are considered ...

QUASI-INSTRUMENTS These instruments are considered as debt instruments for a time-frame and are converted into equity at the option of the investor (or at company's option) aft

Explain the four fundamental rights of ownership, Explain the four fundamen...

Explain the four fundamental rights of ownership A shareholder, by virtue of being an owner, is generally entitled to four fundamental rights of ownership: 1. Claim on a sha

Types of orders prevalent in the us markets, The following are various type...

The following are various types of orders prevalent in the US markets: Market Order : The most common form of order is the market order, which means the order to buy or sell at

Determine the preference shares - equity instruments, Determine the Prefere...

Determine the Preference Shares - Equity Instruments Sandwiched between equity share holders anddebt holders, preference share holders have promise of an assured dividend from

Do you agree or disagree with this statement, Companies with rapidly growin...

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm. Do you agree or disagree with this statement? Explain. Disagree

Capital asset pricing model, Cascade Water Company (CWC) currently has 30 0...

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share. CWC also has 500 000 bonds outstanding that are currently

Rating scale, Rating denote an issuer's ability to respond to adverse...

Rating denote an issuer's ability to respond to adverse changes in circumstances and economic conditions. The rating scale is generally differentiated into variou

Working capital as a percentage of total assets, Q. Working Capital as a Pe...

Q. Working Capital as a Percentage of Total Assets? This approach of estimation of working capital requirement is based on the fact that the total assets of the firm arc consis

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages