Essay On Larsen And Toro

ACF 214-FINANCE PROJECT

Group Leader-Mr. Ajay Yadav
Company- Larsen and Toubro (L&T)
Individual Coursework
Date-21/03/12

\

By, Shashank Bahadur Shah Section-A, 100172, BBA 2yr (2010-2013)

INDEX

1) Introduction

2) Capital Structure

3) Capital Asset Pricing Model (CAPM)

4) Weighted Asset Cost of Capital (WACC)

5) Dividend Policy

6) CAPM and Intrinsic Share Value

7) Event Analysis

8) Reference

Introduction to L&T Larsen and Toubro, also known as the
Different securities, which represent different sources of finance, are expected to generate different returns. The WACC is calculated by taking into account the relative weights of each component of the capital structure. The more complex the company's capital structure, the more laborious it is to calculate the WACC For example, if the WACC of a company is 15% and current stock price is 28$, then in order to maintain the stock price at $28, the company needs to earn a 15% return on its existing assets and business operations (net income). A fall in the stock is the last thing that corporations would desire to happen. It is becomes difficult to calculate the WACC if the company has a complex capital