Cost of Capital

Topics: Investment, Weighted average cost of capital, Net present value Pages: 4 (1397 words) Published: April 17, 2013
ogCost of capital
First of all I would like to say the I wanted to calculate the cost of debt and cost of equity but the information given in the statements are missing the items needed to calculate the cost of debt and the cost of equity but I would like to analyze the information related to this part The market capitalization already increased in year 2010to 7,016 million from the previous year which was 3,805 million in year2009.also we can see the share price started year2010 with equal to 180,168,300 and ended the year with 143,885,400 this time it’s showing decreasing number not increasing as usual we need to look to the property plant and equipment its percentage increased as it was 69.7% in year 2009 to 70.3% in year 2010,we can have a look to the receivables and prepayments and this was higher in year 2009 with 13% than it was 2010 with 10.4% .the inventories percentage already decreased from year 2009 to 2010 as we see it was 0.2%in year2009 then it became 0.1% .we don’t need to forget about looking to the shareholders equity as it was 3,,641 million in year 2010 and was lower in the year of 2009 with 2,621 million and it was higher in year 2009 than it was in year 2009,the total assets were increased as we see it was 11,398 in year 2009 and it was 13,240 in year 2010 ,when we look to the revenue we can find that it’s as other equities increasing in a great way as it was 3,133million in year 2009 to 3,948 million in year 2010 lastly we need to check the profits before tax to see how the company whether its performing well or not performing well and we saw it was 6222million in year 2009 and 1099million in the year of 2010 And below are the definition of cost of capital, cost of equity, and cost of debt with elaborations about cost of debt/equity and some examples how to calculate it and some other ways used to find it as using (WACC)to find it Cost of Capital

Capital is a term used in the field of financial investment to refer to the cost...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • cost of capital Essay
  • Cost of Capital Essay
  • NMQ Cost of Capital Essay
  • question the cost of capital Essay
  • Cost of Capital Essay
  • Essay on Cost of Capital
  • Stock and Weighted Average Cost Essay
  • Cost of Capital Essay

Become a StudyMode Member

Sign Up - It's Free