NMIMS Assignments 2015 : Sem 4 : contact us for answers at assignmentssolution@gmail.com

NMIMS Global Access
School for Continuing Education NGA-SCE
Course: Strategic Financial Management
Program (Old) : PFDFM
Semester: IV
Assignment Marks: 30

source of reference.
•  Students  should  write  the  assignment  in  their  own  words.  Copying  of  assignments
from other students is not allowed.
1.  EBIT of X Ltd is $75,000, cost of debt is 10% and debt is $200,000. The overall cost
of capital is 12%. Calculate the value of the firm and the cost of Equity.
( 10 Marks)
2.  Following is the information drawn from Y Ltd.      (10 Marks)
Sales Revenue     Rs1,50,000
(–) Operating Cost     Rs 40,000
(–) Interest Cost     Rs 20,000
Earning before tax     Rs 90,000
(–) Tax (30%)       Rs 27,000
Earning after tax     Rs 63,000
Equity = Rs 70,000
Cost of equity= 15%
Debt = Rs 30,000
Cost of debt = 12%
Determine Economic Value Added.        
3.  Calculate Weighted average cost of capital from following information  (10 Marks)
Capital  Market value  Cost of each security
Debt  Rs4,00,000  8%
Preference  Rs 1,00,000  10%
Equity  Rs 3,00,000  14%
Retained Earning  Rs 2,00,000  12%