1980 1981 1982 1983

Shares outstanding 882354 882354 882354 882354

Market Value of Shares High 432.5 412.5 450 398.75
Market Value of Shares Low 205 302.5 375 317.5
Market Value of Shares Average 318.75 357.5 412.5 358.125
Total Equity 281250337.5 315441555 363971025 315993026.3

LTD 4.11 7.89 8.5 9.74

STD 1.9 2.26 4.51 12.88
Total Debt 6.01 10.15 13.01 22.62

Debt equity Ratio 0.213688632 0.321771176 0.357446036 0.715838583

PBIT 9.97 11.1 8.81 6.66

Interest 0.54 1.09 1.79 2.13
Tax 5.8 5.66 2.46 0.25
PAT 3.63 4.35 4.56 4.28

Interest Rate 8.985024958 10.73891626 13.75864719 9.416445623

TaxRate 61.50583245 56.54345654 35.04273504 5.518763797
Cost of debt
Kd = Interest (1-tax rate) 3.458710562 4.66676181 8.937240913 8.896774231

CAPM DDM
Cost of Debt 9.403 9.403 9.403
Cost of Equity 11.5 19.5 15.9
Debt equity Ratio 0.481467365 0.481467365 0.481467365

WACC 10.49036294 14.63862401 12.77190653

 1984 1985

882354 882354
465 785
362.5 442.5
413.75 613.75
365073967.5 541544767.5

20.02 18.08
9.11 8.03
29.13 26.11

0.79792049265 0.482139272 0.481467

8.15 8.57 70
3.08 2.66
0 0.57 60
Interest Rate
5.07 5.34
50
TaxRate
10.5732921387 10.18766756 10.98401 40
0 9.644670051 12.55154 Cost of debt
30 Kd = Interest
rate)
10.5732921387 9.205100638 9.60535
20
9.403102
Cost of Equit
10 D1/P0 + g

CAPM 0
1 2 3 4 5 6
Before tax Cod 0.146
Tax rate 50%
After tax Cod 0.073
 Interest Rate

TaxRate

Cost of debt
Kd = Interest (1-tax
rate)

Cost of Equity =
D1/P0 + g

6
ABCL Monthly High & Low Share Price and RBI's All India Share Price Index
Portfolio Market Rf
All India Index
Month High Low (Base = 1970-71) Ri-Rf (log) Rm-Rf (log)
Sept 1980.00 245.00 205.00 162.40
Oct 295.00 255.00 156.10 21.82 -3.96 SUMMARY OUTPUT
Nov 300.00 285.00 157.20 11.12 0.70
Dec 335.00 310.00 166.70 8.40 5.86 Regression Statistics
Jan 1981.00 325.00 305.00 170.90 -1.63 2.48 Multiple R
Feb 330.00 302.50 172.10 -0.83 0.69 R Square
Mar 407.50 340.00 178.20 11.68 3.48 Adjusted R Square
Apr 412.50 380.00 186.70 11.12 4.65 Standard Error
May 407.50 385.00 190.50 1.30 2.01 Observations
Jun 390.00 380.00 193.80 -1.31 1.71
Jul 392.50 385.00 198.50 1.30 2.39 ANOVA
Aug 382.50 372.50 194.60 -3.31 -1.99
Sep 400.00 375.00 185.50 0.66 -4.80 Regression
Oct 400.00 390.00 188.80 3.92 1.76 Residual
Nov 396.30 387.50 192.70 -0.65 2.04 Total
Dec 400.00 395.00 193.00 1.91 0.15
Jan 1982.00 405.00 396.30 193.80 0.32 0.41
Feb 432.50 397.50 192.10 0.30 -0.89 Intercept
Mar 430.00 402.50 189.80 1.24 -1.21 X Variable 1
Apr 406.00 380.00 184.00 -5.76 -3.11
May 400.00 386.30 182.70 1.64 -0.72
Jun 400.00 375.00 176.30 -2.98 -3.57
Jul 388.80 380.00 172.10 1.32 -2.42
Aug 387.50 380.00 178.40 -0.01 3.59
Sep 390.00 377.50 179.20 -0.67 0.44
Oct 392.50 387.50 180.90 2.61 0.94
Nov 392.50 385.00 181.00 -0.65 0.05
Dec 392.50 382.50 188.00 -0.66 3.79
Jan 1983.00 398.80 397.80 185.40 3.92 -1.40
Feb 395.00 391.30 181.50 -1.65 -2.13
Mar 395.00 372.50 180.70 -4.93 -0.45
Apr 365.50 320.00 178.00 -15.20 -1.51
May 350.00 317.50 189.20 -0.79 6.10
Jun 360.00 350.00 199.50 9.74 5.29
Jul 367.50 348.10 197.20 -0.55 -1.17
Aug 375.00 346.30 197.10 -0.53 -0.06
Sep 382.50 377.50 196.90 8.62 -0.11
Oct 382.50 372.50 197.00 -1.34 0.04
Nov 377.50 375.00 200.30 0.66 1.65
Dec 380.00 375.00 206.60 -0.01 3.09
Jan 1984.00 455.00 380.00 209.10 1.32 1.20
Feb 455.00 380.00 205.40 -0.01 -1.79
Mar 386.30 380.00 203.40 -0.01 -0.99
Apr 390.00 382.50 199.40 0.65 -1.99
May 383.80 362.50 195.60 -5.38 -1.93
Jun 397.50 368.80 198.40 1.72 1.41
Jul 398.80 395.00 210.30 6.86 5.82
Aug 397.50 343.80 208.20 -13.89 -1.01
Sep 400.00 396.30 205.80 14.20 -1.17
Oct 425.00 396.80 210.40 0.12 2.20
Nov 410.00 402.50 209.40 1.42 -0.48
Dec 465.00 405.00 212.40 0.61 1.42
Jan 1985.00 450.00 442.50 223.30 8.85 5.00
Feb 452.50 442.50 231.30 -0.01 3.51
Mar 525.00 445.00 244.00 0.56 5.34
Apr 605.00 500.00 264.70 11.65 8.14
May 580.00 565.00 283.20 12.22 6.75
Jun 625.00 567.50 309.40 0.43 8.84
Jul 685.00 630.00 10.44
Aug 735.00 682.50 8.00
Sep 700.00 650.00 -4.89
Oct 660.00 625.00 -3.93
Nov 660.00 625.00 -0.01
Dec 785.00 765.00 20.21
 0.006667

gression Statistics
0.31
0.10
0.08
5.92
57.00

df SS MS F Significance F
1.00 205.06 205.06 5.85 0.02
55.00 1927.82 35.05
56.00 2132.88

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
1.08 0.84 1.29 0.20 -0.60 2.75 -0.60 2.75
0.62 0.26 2.42 0.02 0.11 1.14 0.11 1.14
 Dividend Discount Model

1980 1981 1982 1983 1984 1985

Dividend per share 17 20 20 20 20 22

Market Value of Shares High 432.5 412.5 450 398.75 465 785
Market Value of Shares Low 205 302.5 375 317.5 362.5 442.5
Market Value of Shares Average 318.75 357.5 412.5 358.125 413.75 613.75
EPS 41.17 49.34 51.68 48.45 57.45 60.51
Share Capital 88235400 88235400 88235400 88235400 88235400 88235400
Shares outstanding 882354 882354 882354 882354 882354 882354
Reserves and Surplus 81100000 107000000 135000000 160100000 186000000 220000000
Book equity/share 191.9132 221.26652 252.99982 281.44645 310.79975 349.33303

Payout Ratio = Div p Share / EPS 0.412922 0.4053506 0.3869969 0.4127967 0.3481288 0.3635763
Plowback ratio = 1-Payout ratio 0.587078 0.5946494 0.6130031 0.5872033 0.6518712 0.6364237
ROE = EPS/ book equity per share 0.214524 0.222989 0.2042689 0.1721464 0.1848457 0.1732158
g =Plowback ratio * ROE 0.125942 0.1326003 0.1252175 0.1010849 0.1204956 0.1102386
Cost of Equity = D1/P0 + g 17.89573 18.187934 17.353052 18.177006 17.336657 15.938344
P/E ratio 7.742288 7.2456425 7.9818111 7.3916409 7.2019147 10.142952
0.119263