Cost of preference equity-irr , Financial Management

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 1st 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

 

Posted Date: 3/9/2013 2:36:51 AM | Location : United States







Related Discussions:- Cost of preference equity-irr , Assignment Help, Ask Question on Cost of preference equity-irr , Get Answer, Expert's Help, Cost of preference equity-irr Discussions

Write discussion on Cost of preference equity-irr
Your posts are moderated
Related Questions
Interference of Central bank in Markets: Some dilemmas exist in the issue of central bank intervention in the market to correct the volatilities in the prices. In some countrie

A holder in debt obligation, though does not have any opportunity to share in the economic growth of the firm, is interested in a firm's profitability because it

how to do assignments based on these topics more specifically?

BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected

INSTRUCTIONS Download the 2011 Annual Report for Marks and Spencer PLC, from the link provided on Study Space. Review the Annual Report, paying particular attention to the Fin


Exchange Rates The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a count

Unity of Command Unity of command is the principle in which each subordinate should be responsible to only one manager.

Dividend Decision: The Dividend Decision is a decision taken by the directors of a company. It relates to the timing of any cash payments and amount made to the company's stoc

How does a preemptive right protect the interests of existing stockholders? A preventive right protects the interests of existing stockholders by giving them the opportunity to