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Q. The capital structure of Hindustan Traders Ltd. As on
31.3.2000 is as follows:
Equity capital: 100 lakh equity shares of Rs.10 each: Rs.10 Crores
Reserves and Surplus: 2 Crores
14% debentures of Rs. 100 each: 3 Crores
For the year ended 31.3.2000 the company has paid equity dividend
at 20%. As the Company is a market leader with good future, dividend
is likely to grow by 5% every year. The equity shares are now traded
at Rs.80 per share on the stock exchange. Income tax rate applicable
to the Company is 50%.
(a) Compute the current weighted average cost of capital.
(b) The Company has plans to raise in future Rs.5 Crores by way of
floating long-term loan at 16% interest. When this takes place the
market value of the equity shares is expected to fall to Rs.50 per
share. What will be the new weighted average cost of capital of the
Company?
Answer. .......NOT AVAILABLE IN SAMPLE............
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Q. Explain the factors influencing pattern of capital structure.
Answer. Capital structure refers to the mix of long-term sources of funds, such as debentures, long-term debt, preference share capital and equity share capital .......NOT AVAILABLE IN SAMPLE............
The primary factors that influence a company's capital-structure
decision are:
1.Business Risk
Excluding debt, business risk is the basic ........
...NOT AVAILABLE IN SAMPLE........
Q. What tools are available to the project manager to use
in controlling a project? Identify some characteristics of a good
control system.
Answer. Control is the act of comparing the planned performance with the actual and reducing the difference between the two. It is the last element in the implementation ..........NOT AVAILABLE IN SAMPLE..................
The process of controlling a project (or any system) is far more complex than simply waiting for something to go wrong and then, if possible, fixing it. Following are basic types of control processes.........................
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Q. Explain the various sources of long term financing.
Answer. Long term financing is a form of financing that is provided for a period of more than a year. Long term financing services are provided to those business entities that face a shortage of capital.. ......NOT AVAILABLE IN SAMPLE..................
Major sources of long term financing are:
SHARES
A share is a part ownership of a company. Shares ..........................
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