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Assignment 3 222014

Assignment on capital market hypothesis

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MD limon Hossen
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0% found this document useful (0 votes)
6 views15 pages

Assignment 3 222014

Assignment on capital market hypothesis

Uploaded by

MD limon Hossen
Copyright
© © All Rights Reserved
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Jashore University of Science and Technology Department of Finance and Banking Course title: Modern Finance Theory Course code: FB 5109 An Assignment on Chapter 16 (Capital Structure) Question solved from the exercise Concept Question: (1,5,8,9,10) Problems: (5,9,10,12,18,21,25) Submitted to. Submitted by Nuzat Tabassum Simran Lecturer Department of Finance and Banking Jashore University of Science and Technology id Limon Hossen IBA 1st semester Department of Finance and Banking Jashore University of Science and Technology Date of Submission: 09/10/2024] Anguere no-l naar ae af fre Modiqhant - miner theory Jy & Word voithouk paces D TRawitwars earn borrow Same VWrenes? wate ak whieh Ake Prem bonnas, Since investons Corr Puees 2 Seeunihes on Trangin, don Individuots efkerrwe Wyerest Wate is probouy mo Wigher sien Pak Pou e Pla. TheneBne Wis aapuntio \e Resgomably When a9 Pising. MMs Weer +o Ane peeot Worhd- ys ® “Rene me Te Taxes} “Try Hee reat Wend Gams do TA} tater, Tr the presence OF con powte yaxes, tre vaiwe of a wis pesivery petates yo its debt level, ® Were ave ne Goss oF Prramciet Lishvess, Te kee een wend, e6sxs of Pynomei al pe Suystantial + Simee Sforlthe de distwe 39 08 pean “these Costs, Pere er CN eK OMS ane mcenrives On « Binsen Yo \owen Awe aenount of aebk In Itt Capitel S\rachane, Amswen No- & Oar Business renske 3S HC equshy reas aresing Dron Yue Tatarme Of Me HBroms OPE Renting activity One Ve Ainectyy Gelated to tue gyszemane WSy oF Awe Rams assets, Finan ei risk is The ary rise, Wet is bane eoirety “yo the Bams Chosen Capi bet SAnerareg, AS Rrancin tevenage on tre We OF debt Prameing, jneneoe® So doet QYrameiad Tsy and hence ee pvenam yase OF We -equihy + Ws Pian eou\s have & Wigner COSt oF equity even nye, ® weirwes genes | fingwen 1o- 4 ye catted leverage berause Ve veragnities aes om \oss 274 60 peceired Vy Huw PL awe dot ab i bends win be’ sranaro\ter— . 3 boo goon | SYD 2 6469 gor Moo Br Bram holer inka z S469 - 241 z 4069 netanrn in this ewe SOR Khancholder UWI wer 2 Yous (sre Qe Is 56% Anwwen noe 9 (¢) .oo~eerr~n'"m=—'n&>ep ASC IS an OM ~e gut aetty Comparer So, Re = Bye 69ers /C youre Og vwfortey we weet fo qo Rea Ae eos} oH Eby Ba 42) Uke THEM ProgosiHor AW $o5 a = Rat (Ra Rod (5) (- to Re = erat (ers - -02) (1) (1) D 1B S0% Anjwen Nem 2 QY sro Baa Wee wace Pr enc compar Weneed use dee WACO Sqretton’ ines = Erde, + (Dee We 19 De, Aoe BWACC = 4 (sa + © GB) 2 [ort % Fem MAE, AWE ware Ts = Cun) CH +Q) (88) 2 jor t 2” When Bi lasraae ane No Conponate ted “tneeo of capite Bree Siam is Canad sf espite, SAnnwetundt, “tures by frswer ne-[o OI Lie Ro Fate$, te Vawre Of Umiemene® Dyren is > Ve geit/wace S Yprowss0D EO1t /rozy .o8 »y ESITS ya oernre mE s eet = 3 elds Ansuer Ten Wey Areeonting to bare Wrbrumetion , tue WAce As wace= G/vRe + (B/v) ee (I- +) > \05 o(\rs}ps + shes)ns Q- “>S) apes = 14he +. Qa » 4 Rs = 60 Ht W Ry e ae ZIBWUSH frgwer meo- 2) sje Find ana. mbevenca Ces oF Raby! Qs = Pot Po-Ra) (8/5) (i tes DABYS 2 Rot (Ro- 08) WS (1-*4s) ty \O4S 2 Lo +(Po-1e3) (: 95) DNGUS = Ro HITPe— Fs Dp rers > pe UF95) 2 Ro 2127 fesse WE we TE deer AG AS OF LL, Mn- Ry, z%et Ro- ts) (C/U tO isan (re DCD Or PD BD Leer TE deck eqaity mete OF! Re = fot Cee Be) CB!) (re FO > 1379 + (srs-res] OCD DG Wits Lest epety restie OPO, her Ps = Rot (ho-Pe) (O/>) (Int D+ 13vH +H 319-8) (659 D \31r19% poem Amer non 1@ (a) SOO pe vawe oF Awe compen Vet \ sc Evtt (V- 45] & D 2635° (1-9/5 D \\o3se We kno, vawe 0 \enencd S Awe an Yo N= vot he yh deyi Ts SO” of Vy then aks Ny=z Vo* ac hse Neu BD \yeo3se G35) Oss (seas) 2 146 TN1 th ygevi is \sor% of Ny then d= W)vy NU = No * te ASVu %® WbB5° aC) ad (11erFe) S \e Be TB BER IRAKL va o Peak Devt fe eredy netic > Sa ave Va of emily 2 LEW). Angnen neo 2 Cb) we Pim need FO Cotevlare dae cost om eats: Re = PEs (Rm BEB Dm 105+ (oM-ces)vvs bi 2 wd % PEWS ACe = (ie Dp. (e[®p, Loss _, 2 LOD Sie See (ese? AQooures) 2946 005 BD Jos Aba, rreeedeny aw Rope of debt Pore cmenfl Anjuen mon 21 (eS LILY Accomding te fee mim gropesitroy VW Wits no Lanes . Ry, = Pe* (8)s) (Qo- Fe) > V5 DP +(2*5 (po - 0%) DMO = Ly x r4pe 710135 WD ABLES = Esti) Zz nee > Ro _- ARo rz Sosy Tr be aobseence oF “routes, , Ava! Cost of cagitn Yea an os SEA by Bn ie 244 bo due WEITREEL Awenaqe cD cagiver OF 27 otwenwoisec ee S$ & \eontt ae \evens a nN» AnS$ven No-2e Co) aoa TI O Worth With Congorste tare a Dinen's weighked avereqe essxeF copi ted Vs equa te 5 Rae (oimedgPe/9 ns L eeeeek eas coed (te yh» 1% 0B Ry 2 D° lo Bree = 669" 113 OER 33° Ps aR = LY. 0% ‘kh ee Var oe Wwe Copy) g devs te eet yi, retio 139 glsxe > ua/ (ltr 2 6969 Comey) Vere eh Yo Value > (s | 3) > [e-*9 2 3a id Angwen Mo-2S (4) annoy Vi Y/Y Tre comparyist Untevened CO>* of equity comity IS > Re Ro + GIs) (po- Re) -to D+ L4o% = po + (3) (Ho - 106) (35) D (3 2 Yo + L3ko- ABs (665) wm +2403 = Ro tI 495Ry — 19994 » do z 19.273”

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