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In this lecture I have calculated specific cost of capital (i.e. cost of equity, cost of preference share and cost of debt) and also explained ‘Weighted Average Cost of Capital’. In later part I have calculated WACC by two alternative methods. This question is solved using book value approach, alternatively can be solved using market value approach.
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Weighted Average cost of Capital (WACC) under Book Value Approach ~ Financial Management
financial book
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Kp= PD/PO
Then in kp why are u taking PO 100 because Po u have write 160 on left hand side
❤️❤️❤️❤️❤️🙏🙏🙏🙏🙏🙏
You are required to determine the weighted average cost of capital on the basis of following
information. Tax rate is 40%.
Capital Component Details
(a) Equity Share Capital 10,00,000 equity shares of ₹100, market value per share
₹250. Growth rate of dividend 6%
(b) Retained Earnings ₹5 Crores
(c) Debentures 1,00,000 debentures of ₹100 each, Interest rate 15%, current
market value ₹110 each
(d) Preference Capital 50,000 Shares of ₹100 each, dividend rate 11% ,current
market price ₹90 each
Sir how to solve these typ of questions
Language barrier.
Thanks
Book share kr dyn pdf format
Thank you sir
sir you are awesome.. i want to meet you…. i am ACCA student & watch your video for COC
Which book sir do use
Really no other vdo help me this much as yours sir…
Ke=5*
Book kon si use ho Rahi hai PDF mein ha book
Great 👍
Thnk u sir
Sir can you please also record the class when you were teaching this concept from starting because we can't jump directly to the illistration
Thank you sir❤🇧🇩
To the point explanation thumbs up
Thank you so much Sir, it was so precise and to the point explanation 👏🏻👏🏻💐💐 need more of such short concept-clearing videos 🙏
Thank you so much sir I understood better than cls❣️
Sir, as you are mentioning ki growth rate nahi di hai toh kuch add nahi hoga for calculating individual cost of equity (Ke). But what if I have dividend growth rate as 5% then what will be my Ke in this case.
Thanku sir 😊😊😊
Sir mujhe aap se ek questions puchna h kese puch sakta hu
CA Naresh is an excellent tutor. I make it a point to see as many of his video tutorials as possible. There have been times when international and English speaking tutors couldn't explain some concepts clearly . I have then turned to CA Naresh's videos and those helped. Am happy to say that like me, he too is a CA . Thanks, Nareshji.
Keep doing good work
Thank you sir
Thnku sir 😊
Sir….you are the best educator….🙏🙏 you jus…make things soo easy…guru devoo bhava🙏
in preference dividend u have written PD/P0 and in place of P0 u have written 100 when P0 is 160
Ke ki value galat hai… Divided hamesha facevalue par nikalta hai naki market value par
Wht if retained earning is also given
Great🤗🤗
Thank u soo much sir…😊😊
dear sir ,
kindly post over cost variances in ca inter please
he is solving from which book
Samaj m nahi aata h
Sir very nicely explained, but if i am not wrong tax rate in question was 50% u took 30% only. 😅
Thank you sir…..u are doing a marvelous job of making things easier and available
Thanku so much sir u help me lot ur way of teaching is realy good . U helping me to clear my exam thanku 🤲
Nice..Many Thanks
Hello
I have a question. Why is the income tax rate taken into account when calculating the WACC?
If tax rate is not given, cost of debt is equal to the percentage of Interest ?
I wish this was in English 💔😥
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Sir… How to caluction of Cost of capital under market value as weight????
Sir please upload ur questions are publisher book name
Sir certainty equivalent approach is not there when u will post ,waiting for the vedio sir
can any one answer the following question
1. Why is the after tax cost of debt rather than it’s before tax cost used to calculate the weighted average cost of capital?
2. Dose the component cost of preferred stock include or exclude flotation costs? Explain
3. Why is no tax adjustment made to the cost of preferred stock?
Thank you sir, very helpful