Corporate Finance PREM AUTO CASE QUESTIONS

Corporate Finance PREM AUTO CASE QUESTIONS - Transcript

PREM AUTO CASE QUESTIONS
Anand has projected the firm s variable cost to sales ratio as 0 76 after the expansion In addition the fixed costs excluding interest would rise to rs 12 5 crore Compute the level of sales that will equate the EPS regardless of whether the expansion is finance thru debt or equity
Using last year s data as base make a comparative statement for alternative sales levels of 60 80 100 110 and 120
Project the share prices under different alternatives of financing
If Mr P D Sharma s forecast is to be believed and depended upon which financing alternative would you recommend and why