1. Calculation of cost of Equity 3.

Calculation for Equity capital

Beta 1.27 Number of outstanding shares
Risk free rate 4.20% P/E

Return on market 12.90% 8.70% EPS

Cost of equity 15.25% Share price

Market Capitalisation

2. Calculation for cost of debt

Long term debt including
current portion $5,351.00 6.50% 4. Calculation for WACC
Total Capital
Short term debt WACC
Banker's acceptance $369.00
Commercial paper $1,056.00
Total $1,425.00 3.52%

*Figure are in Million Dollar

 Submitted by:
854.9 Group 4
13.1 Akshay Chaturvedi 17PGP011
Bhavya
4.01 Chhawchharia 17PGP038

$52.53 Karan Singh Bhandari 17PGP065

$44,908.75 Shivam Chugh 17PGP135
Shravan 17PGP064
Siddharth Sachdeva 17PGP142

$51,684.75
14.02%
Years Stock price Earnings per Share Dividend per Share Payout

2002 23.88 1.44 0.2 0.138888889

2003 25.5 2.46 0.15 0.06097561
2004 34.2 3.75 0.2 0.053333333
2005 54.56 3.85 0.28 0.072727273
Average 34.535 2.875 0.2075 0.0814812762

RoE 0.084246434
Dividend Payout Ratio 0.081481276
g 7.738% RoE(1-Payout Ratio)

Initial Price P 56.75

D(0) 0.28
D(1) 0.301666939

Cost of Equity 8.2697644% D(1)/P(0)+g

ROE

0.060301508
0.096470588
0.109649123
0.070564516
0.0842464337