Years

1
2
3
4
5
6
SD

Sys SD
IDIO

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.158319772733
R Square 0.025065150438
Adjusted R Sq -0.21866856195
Standard Erro8.572380899477
Observations 6
ANOVA
df
Regression 1
Residual 4
Total 5

Coefficients
Intercept 5.214285714286
X Variable 1 0.328571428571
 0
-95

10.33%
9.87%
Date ITC Close Price NSE Close price
18-Jul-23 472.5 19749.25
19-Jul-23 478.85 19833.15
20-Jul-23 492.15 19979.15
21-Jul-23 490.45 19745
24-Jul-23 471.35 19672.35

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.61590104
R Square 0.37933409
Adjusted R Square 0.06900113
Standard Error 0.02807189
Observations 4

ANOVA
df SS
Regression 1 0.000963246077
Residual 2 0.001576061893
Total 3 0.00253930797

Coefficients Standard Error

Intercept 0.00177714 0.014150553427
X Variable 1 2.09470174 1.894633473438
Plans 1 2
Debt Ratio 0% 10%
Debt Amount 0 50000
Kd 0.08 0.0825
Ke 0.12 0.125
EBIT 120000 120000
Int 0 4125
EBT 120000 115875
Tax 60000 57937.5
PAT 60000 57937.5
Vd 0 50000
Ve 500000 463500
FV 500000 513500
We Debt 0 0.097370983447
We Equity 1 0.902629016553
WACC 0.12 0.116845180136
10.53%
NSE Nifty Nihar Ltd Vrunda Ltd T-bills
10 13 7 6
12 21 12 7
15 10 18 5
8 -2 7 6
11 6 -5 5
4 10 12 7
3.7416573867739 7.6070143069845 7.76530746332687 0.894427190999916

0 0.6618102447077 0.194132686583172
6.9452040622768 7.5711747767437
 SS MS F Significance F
7.55714285714 7.55714285714 0.1028382581649 0.7645044953607
293.942857143 73.4857142857
301.5

Standard Error t Stat P-value Lower 95%

10.8271515591 0.48159349075 0.6552571491596 -24.846706235293
1.02459549012 0.32068404726 0.7645044953607 -2.5161617047706
1 2 3 4
9 9 9 9
10.33%
 Price Ret
472
478 0.0127118644068
0.01271186441 492 0.0292887029289
490 -0.0040650406504
471 -0.0387755102041

MS F Significance F
0.00096324608 1.22234549362 0.3840989613425
0.00078803095

t Stat P-value Lower 95% Upper 95%

0.12558779302 0.91154412299 -0.0591077805547 0.0626620541045
1.10559734696 0.38409896134 -6.0572481446607 10.246651628069
3 4 5 6
20% 30% 40% 50%
100000 150000 200000 250000
0.0875 0.0975 0.11 0.125
0.13 0.135 0.145 0.16
120000 120000 120000 120000
8750 14625 22000 31250
111250 105375 98000 88750
55625 52687.5 49000 44375
55625 52687.5 49000 44375
100000 150000 200000 250000
427884.615385 390277.777778 337931.03448276 277343.75
527884.615385 540277.777778 537931.03448276 527343.75
0.18943533698 0.27763496144 0.3717948717949 0.4740740740741
0.81056466302 0.72236503856 0.6282051282051 0.5259259259259
0.11366120219 0.11105398458 0.1115384615385 0.1137777777778
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.29512163
R Square 0.08709677
Adjusted R Sq-0.14112903
Standard Erro 8.12608967
Observations 6
 ANOVA
df SS MS F
Regression 1 25.2 25.2 0.38162544
Residual 4 264.133333 66.0333333
Total 5 289.333333

Upper 95% Coefficients Standard Error t Stat P-value

35.2752777 Intercept 3.66666667 10.2634735 0.35725397 0.73895317
3.17330456 X Variable 1 0.6 0.97125349 0.6177584 0.57016963
 5
109
NSE Price NSE Ret
19749
19833 0.00425338
19979 0.00736147
19745 -0.0117123
19672 -0.00369714

Lower 95.0% Upper 95.0%

-0.05910778 0.06266205
-6.05724814 10.2466516
217857.143
 100
97
104.76
117.3312
124.371072
145.514154
Significance F
0.57016963

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

-24.8293042 32.1626375 -24.8293042 32.1626375
-2.09663199 3.29663199 -2.09663199 3.29663199
 100
108
120.96
128.2176
125.653248
147.0143

8.01%
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.29512163
R Square 0.08709677
Adjusted R Sq-0.14112903
Standard Erro 8.12608967
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 25.2 25.2 0.38162544 0.57016963
Residual 4 264.133333 66.0333333
Total 5 289.333333

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 3.66666667 10.2634735 0.35725397 0.73895317 -24.8293042
X Variable 1 0.6 0.97125349 0.6177584 0.57016963 -2.09663199
10.53%
ficance F

Upper 95% Lower 95.0% Upper 95.0%

32.1626375 -24.8293042 32.1626375
3.29663199 -2.09663199 3.29663199
SD
Corr
Years NSE Nifty Nihar Ltd Vrunda Ltd T-bills
1 10 13 7 6
2 12 21 12 7
3 15 10 18 5
4 8 -2 7 6
5 11 6 -5 5
6 4 10 12 7
A B
6 5
2 2
3 4
4 7
5 2
1.58113883 2.12132034
0.2981424
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.29512163
R Square 0.08709677
Adjusted R Sq-0.14112903
Standard Erro 8.12608967
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 25.2 25.2 0.38162544 0.57016963
Residual 4 264.133333 66.0333333
Total 5 289.333333

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 3.66666667 10.2634735 0.35725397 0.73895317 -24.8293042
X Variable 1 0.6 0.97125349 0.6177584 0.57016963 -2.09663199
11.84%
 8.023%

8.2
A
3
6
8
3
5

-0.47980526
Years NSE Nifty Nihar Ltd Vrunda Ltd T-bills
1 10 13 7 6
2 12 21 12 7
3 15 10 18 5
4 8 -2 7 6
5 11 6 -5 5
6 4 10 12 7
ficance F

Upper 95% Lower 95.0% Upper 95.0%

32.1626375 -24.8293042 32.1626375
3.29663199 -2.09663199 3.29663199
B
4
5
2
7
9
Diff between security is beta
ff between security is beta
Risk free rate 3%
Beta 1.2
Market Risk Premium

Cost of capital
Ke Rf+B*MRP
Ke 3%+1.2+12%
Ke 17.400%

Cost of Debt
MV Debt - 180
Maturity 5Y and 9% Coupn rate
Book value is 200

YTM 11.76%
Q1
Annual divi 3.8
CMP (P0) 42.7

KP= D/P0

0.088993

Q2
Radio City

FV 100
Current Mar 90
Couple rat 8%
Annual Div8Rs.
N 8years
Tax 25%

YTM is righ 10%

 ITC closed NSE closed prince
18 472.5 19749.25 Return Return
19 478.85 19833.15 0.013439 0.004248
20 492.15 19979.15 0.027775 0.007361
21 490.45 19745 -0.003454 -0.01172
24 471.35 19672.35 -0.038944 -0.003679

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.60198
R Square 0.36238
Adjusted R 0.043569
Standard E 0.02812
Observatio 4

ANOVA
df SS MS F Significance F
Regression 1 0.000899 0.000899 1.136662 0.39802
Residual 2 0.001581 0.000791
Total 3 0.00248

Coefficients
Standard Error t Stat P-value Lower 95%
Intercept 0.001621 0.014174 0.114351 0.919405 -0.059367
X Variable 2.02337 1.89784 1.066144 0.39802 -6.142377
Q4

E(Ri)=R+Bi X (E(Rm)-Rf)

9.68%

Q.5 Positive co-relation

TRUE

Q.6
WACC formula

Market val 80
Par value b 1000 80000 market value debt

Cost of Debt

0.086

Market value of equity

No of stock 4000
Selling pric 40
MV of E 160000

Cost of Equity

Re=rf+Bx(Rm-Rf)

Risk free r RBI 10Y T bill 4%

Beta 1.1
Market Ris 6%

Re= 0.004+(1.1*0.06)
Re 10.60%

YTM

9.87%
nificance F

Upper 95%
Lower 95.0%
Upper 95.0%
0.062609 -0.059367 0.062609
10.18912 -6.142377 10.18912
vd DFC/r 5000 0
Ve ECF/r 16667 20000
Firm value 21667 20000
WACC 13.84 15 market rates always to be used
kd 10% 0
ke 15%
Vd 5000
Ve (ke-vd) -5000
FV 20000
WACC(kc) 0.15 0.15
Q.1
Unlivered

Total Assets 40000

shares 100
Per share value 400

Value of unlevered firm 40000

Value of tax shield Debt x Tax rate = 10000

2500

Calculate value of levereVL

42500

Value of equity in levered firm - EL

32500

new stock price 325

Change in stock price -75

Q.2
Sandeep Ltd 286 Mcap
No . Of shares 2milliion
Per share valye 143

Calculate debt taken

0.5 million shares x 143
71.5 million

Tax shield 71.5 0.25 17.875 million

Value of firm
VL=Vu+ tax shield
303.875

no of shares 1.5 shares

Vignesh Ltd A

investment 1000
CF 200
kd 10%
ke 15%
Tax 25%

Project value 200/15% 1333.33

Equity 1333.33

B
30% debt (300cr)

VL=VNL+TS
1333.33 75 1408.33

Split
VE 1108.33 300 VD
MM2 KE=KC+D/E(K1-K0)(1-tc)
=15+300/1108(15-10)(.75)

16.01%
Investment 5L
Tax 50%
EBIT 120000

Tax 50% 50% 50% 50% 50%

Debt % 0% 10% 20% 30% 40%
Kd 8% 8.25% 8.75% 9.75% 11%
Ke 12% 12.50% 13% 13.50% 14.50%
EBIT 120000 120000 120000 120000 120000
WACC 0.12 11.66% 11.28% 10.91% 10.90%
Firm Value 500000 514469.4534 532150.776 549828.179 550458.716
 50%
50%
12.50%
16%
120000
11.13%
539325.843