Fixed asset and working capital growth to be assumed on the


"Develop Share Valuation of the given company. Please adhere to following steps to develop the share valuation for the company assigned to the group. Group-6 Hindalco Step –1 : Take the cost of equity applying Beta. Beta to be arrived at on the basis of the weekly traded data of 2 years or take it from financial press. Please quote the name of the paper and date. Step- 2: Assume Risk Free (Rf) Rate is 7.75 % and Market Return(Rm) is 17% . Step -3: Cost of Debt and marginal tax rate to be arrived from latest years balance sheet and p/l account data. Step-4: Fixed asset and Working Capital growth to be assumed on the basis of the past data. Step-5: Assume first 10 years as assessable growth period and then perpetual growth.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Fixed asset and working capital growth to be assumed on the
Reference No:- TGS02354894

Expected delivery within 24 Hours