Finm321 project 2016 - calculate the cost of debt and


Required Marks

1. Calculate the cost of equity using
- Capital asset pricing model (CAPM)
- Dividend growth model

For purposes of the next questions use the Ke as calculated in the CAPM.

2. Calculate the cost of debt.

3. Calculate the weighted average cost of capital based on market values. Only include equity and long term debt in your calculation.

4. Value each share of the company based on
- Dividend growth model
- PE Ratio

The calculation should take into account that the investment period is for 10 years.

5. State what you think the value of each share should be based on the calculations above.

Also indicate whether you think the current share price is at a discount or premuim to the current share price in the market.

6. Presentation

Attachment:- Project 2016.xlsx

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Financial Management: Finm321 project 2016 - calculate the cost of debt and
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