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
Ledgers: Ledgers record all the entries into the Cash Books. They use the concept of 'double entry' bookkeeping where every ledger entry must be accompanied by another ledger e

discuss the applicability of an operation cycle in a vegetation business

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over

Question 1 What is liquidity risk? What are the causes for liquidity risk? Question 2 Explain the powers and functions of SEBI Question 3 Discuss the various categories

Q. Explain Systematic Risks in Financial management? Systematic risk in non-diversifiable and is associated with the securities Market as well as economic, sociological, politi

Q. Example on hedge fund? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver these against the short futu

What is the monthly interest rate if the lease payments are $24,000 per month for 24 months. The total value is $420,000

Define risk. Examine the need for assessing the risks in a project

Q. Describe about Permanent Working Capital? Permanent Working Capital: - The requirement for working capital fluctuates from time to time. Nevertheless to carry on day-to-day

Routine functions For the efficient execution of the managerial finance functions, routine functions have to be executed. Such decisions concern procedures and systems and incl