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 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

 


Related Discussions:- Cost of preference equity-irr

Standard & poor’s analyze in determining the credit rating, What factors do...

What factors does Standard & Poor’s analyze in determining the credit rating it assigns a sovereign government? Answer: In rating a sovereign government, Standard & Poor’s anal

Bond Valuation, The Pennington Corporation issued a new series of bonds on ...

The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

Market efficiency, Market Efficiency Though there are various markets p...

Market Efficiency Though there are various markets present in the financial system, the ease with which the transfer of funds take place depends on the level of efficiency pres

Accounting period - accounting principle, Accounting Period - Accounting Pr...

Accounting Period - Accounting Principle Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the r

Explain about death benefit, Q. Explain about Death Benefit? Death Bene...

Q. Explain about Death Benefit? Death Benefit - Amounts received under a life insurance contract and paid by reason of death of the insured. (Even though most death benefits ar

Dividends paper, one page paper reviewing "the Morgan Stanley Oil and Gas R...

one page paper reviewing "the Morgan Stanley Oil and Gas Report"

Define deadweight loss, What is meant by deadweight loss?  Why does a price...

What is meant by deadweight loss?  Why does a price ceiling usually result in a deadweight loss? Deadweight loss considers to the benefits lost to either consumers or producers

Ratio analysis, define ratio analysis. explain the advantages of ratio anal...

define ratio analysis. explain the advantages of ratio analysis

Evaluate accounting rate of return and net present value, Citilink has a bu...

Citilink has a business line currently owns and runs 350 sightseeing buses and has a turnover of $10 million per annum. The current system for allocating jobs to drivers is very i

Define country risk, Define country risk. How is it different from politica...

Define country risk. How is it different from political risk? Country risk is a broader quantify of risk as compared to the political risk, as the former encompasses political ri

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd