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Dear Sir / Madam, Pls help me to solve this problem. Four companies provide incomplete information for capital structure & cost of capital. You are requested to ascertain missing details for each company. Alba ltd Bebo ltd kundan ltd D ltd a) Debt ratio equity 40:60 ? 60:40 60:40 b)cost of equity 11% 11% 11% ? c)cost of debt 7.2% 7.2% ? 7.2% d)WACC ? 8.72% 8% 8.32% Another Question: a) Arun ltd has sales of Rs 1600000with variable cost @ 60% Fixed cost Rs. 240000. Its 10% Debt is Rs 2000000 and Equity is Rs 2000000 in shares of Rs 100. calculate all lverages & EPS b) The Co proposes to receive capital structure to 12% bond of Rs 1200000 and equity Rs 800000 The fixed expenses reduces to Rs 200000. The sales remains same but variable cost reduces to 50% of sales. calculate all leverages & EPS. c) Offer your comments on changing position.

Dear Sir / Madam,


Pls help me to solve this problem.


Four companies provide incomplete information for capital structure & cost of capital. You are requested to ascertain missing details for each company.


                                Alba ltd  Bebo ltd    kundan ltd      D ltd


a) Debt ratio equity   40:60         ?             60:40          60:40


b)cost of equity        11%         11%           11%              ?


c)cost of debt           7.2%        7.2%           ?                7.2%


d)WACC                  ?              8.72%        8%            8.32%


 


 


Another Question:


a) Arun ltd has sales of Rs 1600000with variable cost @ 60% Fixed cost Rs. 240000. Its 10% Debt is Rs 2000000 and Equity is Rs 2000000 in shares of Rs 100. calculate all lverages & EPS


b) The Co proposes to receive capital structure to 12% bond of Rs 1200000 and equity Rs 800000 The fixed expenses reduces to Rs 200000. The sales remains same but variable cost reduces to 50% of sales.   calculate all leverages & EPS.


c) Offer your comments on changing position.

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