Cost of Capital - FM Question.

i still cant understand..

plz help me...

plz show detailed workings

this is the detailed working only..u just need to multiply the figures with the assumed discounted rates (18% and 19% and do interpolation)...ask me if there's any problem...what point u dont understand??

Agreed with Sneha.. correct answer is 18.11% 

@ freak guy...dont try to read and understand...solve it urself and apply the process...then u will be able to do it...apply interpolation here...

I think "freak guy" and all other friends got his answer.

Sneha bagla is 100% correct toward her approach. However, if any one have still confusion about calculation part, you can see this detail calculation.

thanx for uploading this sir.........

I think earlier calculation is not visible clearly.

You can down load the same solution as suggested in earlier post from the attachment.

Originally posted by : Sneha Bagla
	thanx for uploading this sir.........

Wel come sneha bagla

how can u put the value...its unknown..P5=2.737/(Ke-0.10) thats what we have to calculate...

hi 

1(1+.20)/20 + .20 = 26%
 

when u discount all the future values then only u will get the present value( present price of the share)...thats the logic...