Model FM

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question 1 Column1 Column2 Column3

source of finance cost before tax tax


bond 1 5% 10%
bond 2 8.18% 10%
preference share 11.75% 10%
equity 12% 10%

question 2
a) ₹ 206,103.16
b) ₹ 720,104.06
c ₹ -101,680.72
d) ₹ -21,956.43
e) ₹ -618,587.25
f) ₹ -83,838.44
g) ₹ 381,655.42 years cashflow
1 10000
2 12000
3 14000
4 16000
5 18000
6 20000
7 22000
8 24000
9 26000
10 28000
11 30000
12 32000
13 34000
14 36000
15 38000
16 40000
17 42000
18 44000
19 46000
20 48000
21 50000
22 52000
23 54000
24 56000
25 58000
26 60000
27 62000
28 64000
29 66000
30 68000
31 70000
32 72000
33 74000
34 76000
35 78000
36 80000

question 3:

Years Cash flow 1 Cash flow 2 Cash flow 3


0 ₹ -100,000 ₹ -100,000 ₹ -100,000
1 ₹0 ₹ 18,000 ₹ 18,000
2 ₹0 ₹ 18,000 ₹ 21,000
3 ₹0 ₹ 18,000 ₹ 24,000
4 ₹0 ₹ 18,000 ₹ 19,000
5 ₹0 ₹ 18,000 ₹ 20,000
6 ₹0 ₹ 18,000 ₹ 16,500
7 ₹0 ₹ 18,000 ₹ 17,000
8 ₹0 ₹ 18,000 ₹ 16,000
9 ₹0 ₹ 18,000 ₹ 20,000
10 ₹ 300,000 ₹ 18,000 ₹ 21,000
15662.9868288594 10602.2079026842 19226.232983855
12% 12% 14%

questio 4
int details 1lac 4l
upto 1l 8% 8000 8000
above 1l to 5l 12% 0 36000
above 5l 18% 0 0
tot int 8000 44000

PARTICULAR 9l equity&1l debt 6l equity&4l dez


ebit 160000 160000
int 8000 44000
ebt 152000
tax 76000 0
eat 76000 0
no of share 36000 24000
eps 2.11111111111111 0
Column4 Column5 Column6 Column7
cost aft tax proportion weighted cost
4.70% 25% 1.176%
7.3631317215265900% 35% 2.577%
12.927096274129300% 20% 2.585%
12% 20% 2.400%

sum 8.739%
Cash flow 1
₹ -100,000 Cash flow 2 Cash flow 3
₹0 ₹ -100,000 ₹ -100,000
₹0 ₹ 18,000 ₹ 18,000
₹0 ₹ 18,000 ₹ 21,000
₹0 ₹ 18,000 ₹ 24,000
₹0 ₹ 18,000 ₹ 19,000
₹0 ₹ 18,000 ₹ 20,000
₹0 ₹ 18,000 ₹ 16,500
₹0 ₹ 18,000 ₹ 17,000
₹0 ₹ 18,000 ₹ 16,000
₹ 300,000 ₹ 18,000 ₹ 20,000
₹ 15,662.99 ₹ 18,000 ₹ 21,000
12% 10602.2079 19226.233
12% 14%

int 1lac 4lac 6lac


6l upto 1l 8% 8000 8000 8000
8000 above 1 to 5 12% 0 36000 48000
48000 above 5 18% 0 0 18000
18000 total 8000 44000 74000
74000

4l equity&6l debt particular 1ldbt&9l eq 4ldbt&6leq 6ldbt&4Leq


160000
74000
86000
43000
43000
20000
2.15
6ldbt&4Leq