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FINANCIAL MANAGEMENT

CIA-3 COMPONENT 2

Jacob George
1520520
3BBA E

MANPASAND BEVERAGES
Sources of Funds

in Rs. Crores

SOURCE OF
FUND
Equity Share
Capital
Debts

2016 (Rs.)

2015
(Rs.)
296.50

2014
(Rs.)
296.50

2013
(Rs)
86.91

2012(R
s.)
86.91

39591.71

34884.3
5

33768.3
1

4501.54

3599.13

TOTAL

39888.21

35180.3
5

34064.8
1

4588.45

3686.04

296.50

COST OF DEBT (Kd)Kd= I (1-t)/NP


Where, I= Interest, T= Tax Rate, NP= Net Proceeds

2016
=3959.171*

2015
=3488.435*

2014
=3376.831*

2013
=450.154 *

2012
=359.913 *

(1-0.33)

(1-0.33)

(1-0.33)

(1-0.33)

(1-0.33)

39591.71

34884.35

33768.31

4501.54

3599.13

=0.067*100

=0.067*100

=0.067*100

=0.067*100

=0.067*100

=6.7%

=6.7%

=6.7%

=6.7%

=6.7%

The rate of interest taken for 5 years is 10% and tax rate 33%.

PG:1

COST OF EQUITY (Ke)Ke- Dividend/ Net Proceeds+ growth rate


2016
=3.5/1+0.204

2015
=4.1/1+0.204

2014
=3.25/1+0.204

2013
=0.1/1+0.204

2012
=4/1+0.204

=3.5+0.204

=4.1+0.204

=3.25+0.204

=0.1+0.204

=4+0.204

=3.704

=4.304

=3.454

=0.304

=4.204

=370.4%

=430.4%

=345.4%

=30.4%

=420.4%

The growth rate is 2.04%


The dividend in 2016 is Rs3.50and Face Value- Rs 1
The dividend in 2015 is Rs. 4.10 and Face Value- Rs 1
The dividend in 2014 is Rs.3.25and Face Value-Rs 1
The dividend in 2013 is Rs. 0.10 and Face Value-Rs 1
The dividend in 2012 is Rs.4.00 and Face Value-Rs 1

PG:2

WEIGHTED AVERAGE COST OF CAPITAL


WACC= (Cost of equity*Weights) + (Cost of debt*Weights)

SOURCE

WEIGHTS

WEIGHTS

WEIGHTS

WEIGHTS

WEIGHTS

OF

(2016)

(2015)

(2014)

(2013)

(2012)

FUND
Equity

296.50/398

296.50/351

296.50/340

86.91/4588.4

86.91/3686.0

Share

88.21=

80.35=

64.81=

5=

4=

Capital
Debts

0.0074
39591.71/3

0.0084
34884.35/3

0.0087
33768.31/3

0.0189
=4501.54/45

0.0235
3599.13/3686

9888.21=

5180.35=

4064.81=

88.45=

.04=

0.992

0.991

0.991

0.981

0.976

WACC (2016)
= (0.0074*3.704) + (0.992*0.067)
= 9.38%
WACC (2015)
= (0.0084*4.304) + (0.991*0.067)
=10.31%
WACC (2014)
= (0.0087*3.454) + (0.991*0.067)
=9.64%
PG:3

WACC (2013)
= (0.0189*0.304) + (0.981*0.067)
=7.14%
WACC (2012)
= (0.0235*4.204) + (0.976*0.067)
=16.41%

COST OF DEBT

2016
6.7%

2015
6.7%

2014
6.7%

2013
6.7%

2012
6.7%

COST OF EQUITY

2016
370.4%

2015
430.4%

2014
345.4%

2013
30.4%

2012
420.4%

2013
7.14%

2012
16.41%

WACC

2016
9.38%

2015
10.31%

2014
9.64%

PG:4

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