MGFB10H3 Final: Summer08 - Assignment+2 Ques
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Please adhere to following steps to develop the share valuation for the company assigned to the group.
Group-6 | Hindalco |
Step â1 : Take the cost of equity applying Beta. Beta to be arrived at on the basis of the weekly traded data of 2 years or take it from financial press. Please quote the name of the paper and date.
Step- 2: Assume Risk Free (Rf) Rate is 7.75 % and Market Return(Rm) is 17% .
Step -3: Cost of Debt and marginal tax rate to be arrived from latest years balance sheet and p/l account data.
Step-4: Fixed asset and Working Capital growth to be assumed on the basis of the past data.
Step-5: Assume first 10 years as assessable growth period and then perpetual growth rate.
HINDALCO | Returns | Nifty | Returns | ||
Date | Adj Close | Date | Adj Close | ||
02/05/2017 | 200.4 | 0.01 | 02/05/2017 | 9313.8 | 0 |
24/04/2017 | 199.35 | 0.06 | 24/04/2017 | 9304.05 | 0.02 |
17/04/2017 | 188.1 | 0.03 | 17/04/2017 | 9119.4 | 0 |
10/04/2017 | 183.25 | -0.05 | 10/04/2017 | 9150.8 | -0.01 |
03/04/2017 | 193.5 | -0.01 | 03/04/2017 | 9198.3 | 0 |
27/03/2017 | 195.05 | 0 | 27/03/2017 | 9173.75 | 0.01 |
20/03/2017 | 194.9 | -0.01 | 20/03/2017 | 9108 | -0.01 |
13/03/2017 | 196.2 | 0.05 | 14/03/2017 | 9160.05 | 0.03 |
06/03/2017 | 187.6 | -0.06 | 06/03/2017 | 8934.55 | 0 |
27/02/2017 | 198.55 | 0.09 | 27/02/2017 | 8897.55 | 0 |
20/02/2017 | 182.1 | -0.01 | 20/02/2017 | 8939.5 | 0.01 |
13/02/2017 | 183.65 | 0.01 | 13/02/2017 | 8821.7 | 0 |
06/02/2017 | 182.05 | -0.05 | 06/02/2017 | 8793.55 | 0.01 |
30/01/2017 | 191.75 | 0.01 | 30/01/2017 | 8740.95 | 0.01 |
23/01/2017 | 190.75 | 0.11 | 23/01/2017 | 8641.25 | 0.03 |
16/01/2017 | 171.65 | 0 | 16/01/2017 | 8349.35 | -0.01 |
09/01/2017 | 172.25 | 0.07 | 09/01/2017 | 8400.35 | 0.02 |
02/01/2017 | 160.75 | 0.04 | 02/01/2017 | 8243.8 | 0.01 |
26/12/2016 | 155.05 | -0.03 | 26/12/2016 | 8185.8 | 0.03 |
19/12/2016 | 159.3 | -0.06 | 19/12/2016 | 7985.75 | -0.02 |
12/12/2016 | 170.2 | -0.07 | 12/12/2016 | 8139.45 | -0.01 |
05/12/2016 | 182.1 | 0.08 | 05/12/2016 | 8261.75 | 0.02 |
28/11/2016 | 168.75 | -0.07 | 28/11/2016 | 8086.8 | 0 |
21/11/2016 | 180.5 | 0.09 | 21/11/2016 | 8114.3 | 0 |
14/11/2016 | 165.35 | -0.04 | 15/11/2016 | 8074.1 | -0.03 |
07/11/2016 | 172.3 | 0.08 | 07/11/2016 | 8296.3 | -0.02 |
31/10/2016 | 158.85 | 0.06 | 01/11/2016 | 8433.75 | -0.02 |
24/10/2016 | 149.65 | -0.01 | 24/10/2016 | 8638 | -0.01 |
17/10/2016 | 151.85 | -0.02 | 17/10/2016 | 8693.05 | 0.01 |
10/10/2016 | 154.6 | -0.02 | 10/10/2016 | 8583.4 | -0.01 |
03/10/2016 | 158 | 0.03 | 03/10/2016 | 8697.6 | 0.01 |
26/09/2016 | 152.7 | -0.01 | 26/09/2016 | 8611.15 | -0.02 |
19/09/2016 | 154.45 | 0.08 | 19/09/2016 | 8831.55 | 0.01 |
12/09/2016 | 142.65 | -0.08 | 12/09/2016 | 8779.85 | -0.01 |
05/09/2016 | 154.85 | -0.01 | 06/09/2016 | 8866.7 | 0.01 |
29/08/2016 | 156.25 | 0.01 | 29/08/2016 | 8809.65 | 0.03 |
22/08/2016 | 154.5111 | -0.02 | 22/08/2016 | 8572.55 | -0.01 |
15/08/2016 | 157.9392 | 0.09 | 16/08/2016 | 8666.9 | 0.01 |
08/08/2016 | 145.4193 | 0.02 | 08/08/2016 | 8592.15 | -0.01 |
01/08/2016 | 142.7862 | 0.08 | 01/08/2016 | 8683.15 | 0.01 |
25/07/2016 | 132.7007 | -0.02 | 25/07/2016 | 8638.5 | 0.01 |
18/07/2016 | 135.1351 | -0.01 | 18/07/2016 | 8541.2 | 0 |
11/07/2016 | 136.5262 | 0.08 | 11/07/2016 | 8541.4 | 0.03 |
04/07/2016 | 126.0433 | 0.02 | 04/07/2016 | 8323.2 | 0 |
27/06/2016 | 123.9567 | 0.06 | 27/06/2016 | 8328.35 | 0.03 |
20/06/2016 | 116.5541 | -0.01 | 20/06/2016 | 8088.6 | -0.01 |
13/06/2016 | 118.0445 | 0.03 | 13/06/2016 | 8170.2 | 0 |
06/06/2016 | 114.5668 | 0.09 | 06/06/2016 | 8170.05 | -0.01 |
30/05/2016 | 104.8788 | 0.15 | 30/05/2016 | 8220.8 | 0.01 |
23/05/2016 | 91.3156 | 0.06 | 23/05/2016 | 8156.65 | 0.05 |
16/05/2016 | 86.3971 | -0.03 | 16/05/2016 | 7749.7 | -0.01 |
09/05/2016 | 88.7321 | -0.03 | 09/05/2016 | 7814.9 | 0.01 |
02/05/2016 | 91.3156 | -0.05 | 02/05/2016 | 7733.45 | -0.01 |
25/04/2016 | 95.7373 | -0.05 | 25/04/2016 | 7849.8 | -0.01 |
18/04/2016 | 100.4571 | 0.05 | 18/04/2016 | 7899.3 | 0.01 |
11/04/2016 | 95.6876 | 0.1 | 11/04/2016 | 7850.45 | 0.04 |
04/04/2016 | 87.1423 | 0.01 | 04/04/2016 | 7555.2 | -0.02 |
28/03/2016 | 86.099 | -0.05 | 28/03/2016 | 7713.05 | 0 |
21/03/2016 | 90.7194 | 0.07 | 21/03/2016 | 7716.5 | 0.01 |
14/03/2016 | 84.6582 | 0.02 | 14/03/2016 | 7604.35 | 0.01 |
07/03/2016 | 82.969 | 0.05 | 08/03/2016 | 7510.2 | 0 |
29/02/2016 | 78.8951 | 0.14 | 29/02/2016 | 7485.35 | 0.06 |
22/02/2016 | 69.0083 | 0.01 | 22/02/2016 | 7029.75 | -0.03 |
15/02/2016 | 68.6109 | 0.13 | 15/02/2016 | 7210.75 | 0.03 |
08/02/2016 | 60.5127 | -0.15 | 08/02/2016 | 6980.95 | -0.07 |
01/02/2016 | 70.7969 | 0.01 | 01/02/2016 | 7489.1 | -0.01 |
25/01/2016 | 70.0517 | -0.03 | 25/01/2016 | 7563.55 | 0.02 |
18/01/2016 | 71.8899 | 0.01 | 18/01/2016 | 7422.45 | 0 |
11/01/2016 | 71.3434 | -0.07 | 11/01/2016 | 7437.8 | -0.02 |
04/01/2016 | 76.411 | -0.09 | 04/01/2016 | 7601.35 | -0.04 |
28/12/2015 | 84.3601 | 0 | 28/12/2015 | 7946.35 | 0.01 |
21/12/2015 | 84.7079 | 0.07 | 21/12/2015 | 7861.05 | 0.01 |
14/12/2015 | 79.3919 | 0.05 | 14/12/2015 | 7761.95 | 0.02 |
07/12/2015 | 75.7651 | -0.04 | 07/12/2015 | 7610.45 | -0.02 |
30/11/2015 | 78.5473 | 0.02 | 30/11/2015 | 7781.9 | -0.02 |
23/11/2015 | 77.1562 | 0.01 | 23/11/2015 | 7942.7 | 0.01 |
16/11/2015 | 76.7091 | 0 | 16/11/2015 | 7856.55 | 0.01 |
09/11/2015 | 76.9078 | -0.04 | 09/11/2015 | 7762.25 | -0.02 |
02/11/2015 | 80.3855 | -0.04 | 02/11/2015 | 7954.3 | -0.01 |
26/10/2015 | 83.5155 | -0.01 | 26/10/2015 | 8065.8 | -0.03 |
19/10/2015 | 84.5588 | -0.03 | 19/10/2015 | 8295.45 | 0.01 |
12/10/2015 | 87.192 | 0.05 | 12/10/2015 | 8238.15 | 0.01 |
05/10/2015 | 83.4161 | 0.18 | 05/10/2015 | 8189.7 | 0.03 |
28/09/2015 | 70.4491 | -0.01 | 28/09/2015 | 7950.9 | 0.01 |
21/09/2015 | 70.9459 | -0.06 | 21/09/2015 | 7868.5 | -0.01 |
14/09/2015 | 75.4173 | 0 | 14/09/2015 | 7981.9 | 0.02 |
07/09/2015 | 75.6161 | 0.04 | 07/09/2015 | 7789.3 | 0.02 |
31/08/2015 | 72.4364 | -0.09 | 31/08/2015 | 7655.05 | -0.04 |
24/08/2015 | 80.0329 | -0.05 | 24/08/2015 | 8001.95 | -0.04 |
17/08/2015 | 84.2968 | -0.08 | 17/08/2015 | 8299.95 | -0.03 |
10/08/2015 | 91.3052 | -0.15 | 10/08/2015 | 8518.55 | -0.01 |
03/08/2015 | 107.3804 | 0.04 | 03/08/2015 | 8564.6 | 0 |
27/07/2015 | 103.1165 | -0.04 | 27/07/2015 | 8532.85 | 0 |
20/07/2015 | 107.1843 | 0.02 | 20/07/2015 | 8521.55 | -0.01 |
13/07/2015 | 105.0769 | 0.02 | 13/07/2015 | 8609.85 | 0.03 |
06/07/2015 | 102.5284 | -0.05 | 06/07/2015 | 8360.55 | -0.01 |
29/06/2015 | 108.4096 | -0.05 | 29/06/2015 | 8484.9 | 0.01 |
22/06/2015 | 114.6828 | -0.03 | 22/06/2015 | 8381.1 | 0.02 |
15/06/2015 | 118.4075 | 0.03 | 15/06/2015 | 8224.95 | 0.03 |
08/06/2015 | 114.4378 | -0.03 | 08/06/2015 | 7982.9 | -0.02 |
01/06/2015 | 117.7704 | -0.07 | 01/06/2015 | 8114.7 | -0.04 |
25/05/2015 | 126.6902 | -0.06 | 25/05/2015 | 8433.65 | 0 |
18/05/2015 | 134.1887 | 0 | 18/05/2015 | 8458.95 | 0.02 |
11/05/2015 | 134.2867 | -0.01 | 11/05/2015 | 8262.35 | 0.01 |
04/05/2015 | 136.1981 | 04/05/2015 | 8191.5 |
Using DDB and switching to SL, complete the following table:
EOY | BTCF | Dep. DDB to SL | T.I. | Taxes (25%) | ATCF |
0 | -640,000 | 0 | 0 | 0 | -640,000 |
1 | 170,000 | ||||
2 | 160,000 | ||||
3 | 150,000 | ||||
4 | 140,000 | ||||
5 | 130,000 | ||||
6 | 120,000 | ||||
7 | 110,000 | ||||
8 | 100,00 | ||||
9 | 90,000 | ||||
10 | 80,000 | ||||
10 | 40,000 |