[discussion_vu] Fwd:MGT201 Assignment No. 2 Idea Solution by Asad Munir

 Dear students
This is an Idea solution by Asad Munir pls do not copy paste as it is.
Intellectual and positive comments will be appreciated

Question No. 1



Cost of equity = [9 / (80-5)] + .05 = 0.17
Cost of preferred stock = 9/90 = .10


WACC = rD XD. (1-Tax) + rP XP + rE XE .
WACC = .30 x .13 (1-.35) + .30 x .10 + .40 x 0.17
WACC = 0.02535 + .03 + 0.068
WACC = 0.12335
WACC = 12.335

Question No. 2

Break even point in units = Fixed expenses / Unit contribution margin

Break even point in units Firm A = 24600 / (16-6.75) = 2660
Break even point in units Firm B =30600 / (20-9.75) = 2985

*~ WS ~*
*~ Devil Jin ~*
* Bscs 4th Semester *

---------- Forwarded message ----------
From: Asad Munir <mc090402550@gmail.com>
Date: Mon, Jan 10, 2011 at 4:01 PM
Subject: ::::|| VU Askari ||:::: MGT201 Assignment No. 2 Idea Solution by Asad Munir
To: askarivu@googlegroups.com

Dear students
This is an Idea solution by Asad Munir pls do not copy paste as it is.
Intellectual and positive comments will be appreciated

--

 

 

--
"Zalimon per Allah ki Laanat" (And we think Hackers when working against any one with negative attitude or to destroy some one, is also doing Zulm.)
 
Please visit www.vuaskari.com, get registered for old papers, quiz, assignments and GDBs...
You received this message because you are subscribed to the Google
Groups "VU ASKARI" group.
To post to this group, send email to vu-askari@googlegroups.com
For more options, visit this group at
 
http://groups.google.com/group/askarivu?hl=en?hl=en
 
http://groups.google.com/group/vu-askari?hl=en?hl=en

--
You received this message because you are subscribed to the Google Groups "Virtual University of Pakistan" group.
To post to this group, send email to discussion_vu@googlegroups.com.
To unsubscribe from this group, send email to discussion_vu+unsubscribe@googlegroups.com.
For more options, visit this group at http://groups.google.com/group/discussion_vu?hl=en.