offer
offer

Get Upto

55% OFF

-Coupon Code-

NEW25

offer
offer

Use Our Seasonal Offers!

Claim Now

4500+ Experts Writer

" I have been serving the college students around the globe for quite a long time. My credentials in Marketing have helped several students who do not have sufficient time to work on their academic writings. I can work on any topic related to Marketing Studies. Some of the crucial topics that I have covered till now are Marketing, Financial Management, Business Communication, Human Resource Management, Project Management, Consumer Behavior, Marketing Strategy, Global Marketing, Integrated Marketing Communication and many more. If any of the topics related to this subject is making your life stressful, then approach me for quick assistance."

Breadan Cooper

Breadan Cooper

Orders in Progress - 24

Orders Finished - 2534

Hire Now

I am adept with the concepts of Mathematics as I have done my Ph.D. in the same field from the University of Sydney. I have provided academic writing assistance to the college-goers in assignments, dissertations, theses, research paperwork, reports, presentations and many more. The topics of Mathematics that are successfully covered by me during these years include Probability & Statistics, Geometry & Dynamics, Multivariate calculus and mathematical models, Numerical analysis, Quantum theory, Algebra, Calculus and analysis, Geometry and topology, Combinatorics, Logic, Number theory, Dynamical systems and differential equations, Mathematical physics, and many others. If you have any query related to this field, then contact me for quick assistance.

Henry Jenner

Henry Jenner

Orders in Progress - 56

Orders Finished - 2111

Hire Now

I am a certified academic writer of Artificial Intelligence, and working with Global Assignment Help Australia to provide academic writing assistance to the students. I have been successful in delivering numerous high-quality research papers, assignments, reports, and term papers to the college students on various topics. Also, my professional experience helps me to keep myself updated of the new researches in this field. The students can approach me for taking writing assistance on any topic related to this area.

Tilly Johns

Tilly Johns

Orders in Progress - 26

Orders Finished - 1477

Hire Now

" I'm a highly qualified academic writer holding Ph.D. credentials in Chemistry from the University of Adelaide and have been offering term papers, assignments, presentations, case studies, reports, dissertations, theses, research papers, etc., to the university and college students. I have worked in several disciplines and topics of Chemistry till now, and some of them are Organic Chemistry, Analytical Chemistry, Physical Chemistry, Bio Chemistry, Environmental Chemistry, Synthetic Chemistry and Catalysis, Organocatalysis, Photocatalysis, C"H Activation, C"C Coupling, Bio- and Medicinal Chemistry, Drug Delivery, Vesicles, etc. If any topic related to this field of science is making you stressful, then hire me today!"

Kenneth Jackson

Kenneth Jackson

Orders in Progress - 23

Orders Finished - 2455

Hire Now

Affordable Prices

Top Grades at Cheap Rates!

    Prices Starts From
    USD 7.19
    Offer Discount 25 % Off
    USD7.19

    Get upto 51% OFF on Your First Order !

    Prices Starts From

    USD 7.19

    Amazing Features We Offer

    24*7 Help Service

    100% Satisfaction

    No Privacy Infringement

    Super-fast Services

    Subject Experts

    Professional Documents

    Financial Management In Organization

    Introduction

    Valuation methods are commonly used by the firms to make decisions. In the current report varied methods of valuation are described in detail. Some methods like cost of debt before and after tax and WACC are applied on the firm data and results are interpreted. At end of the report, methods like DCF, PE ratio and EV/EBITDA are applied on the firm data and results are interpreted.

    (A) Methods of estimating cost of capital and limitation of computed figures

    Cost of capital refers to the cost of equity and debt (Dhaliwal and et.al., 2011). Methods for computing cost of debt and equity are given below.

    Costof debt

    There are two approaches that are commonly used for computing cost of debt. One can either compute cost of debt before and after making tax adjustment. Formula for computing cost of debt before tax adjustment is as follows.

    Kd= Interest/principal*100

    Table 1 Calculation of cost of debt without considering tax for Easy jet

    Interest

    11

    Principal

    504

    Cost of debt

    2%

    In this formula only principal amount up to which debt is taken and interest are used to compute cost of debt. Tax is not considered in calculation.

    Interpretation and limitation of figures

    Cost of debt for Easy jet is only 2% when tax is not taken in to consideration. Main limitation of this figure is that tax amount is not considered in calculation (Li,  2010). It can be observed that in income statement after deducting interest

    Opposite to this there is another approach of calculating cost of debt under which after considering tax cost of debt is computed. Formula for same is explained below.

    Kd= Principal amount*interest rate*(1-tax rate)

    Table 2 Cost of debt without considering tax for Easy jet

    Principal

    504

    Interest rate

    2%

    Tax rate

    20%

    Cost of debt

    8.8

    Interpretation and limitation of figures

    After considering tax cost of debt for the business firm is only 8.8%. It can be said that after and before considering tax rate big difference comes in the cost of debt. There is no limitation of figure because in this tax factor is consider to calculate cost of debt.

    Cost of equity

    Like debt there are two methods that are used to compute cost of equity. These two approaches are dividend yield method and dividend yield plus growth method (Damodaran,  2012). Formula for computing cost of equity by using dividend yield method are given below

    Ke= DPS/Net proceeds

    Table 3 Cos of equity for Easy jet

    DPS

    55.2

    Net proceeds

    767

    Ke

    7%

    In this formula only dividend per share and net proceeds that are received per share are taken in to account. Other method that is used to compute cost of equity is earning yield method. Formula of this method is gi

    Amazing Discount

    UPTO55% OFF

    Subscribe now for More Exciting Offers + Freebies

    Download Full Sample

    Cite This Work

    To export references to this Sample, select the desired referencing style below:

    Students sometimes cannot express their inability to work on assignments and wonder, "Who will do my assignment?" To help them understand the complexities of writing, we are providing "samples" on various subjects. Also, we have experienced assignment writers who can provide the best and affordable assignment writing services, essay writing services, dissertation writing services, and so on. Thus, don't wait any longer! Place your order now to take advantage of discounted deals and offers.

    Limited Time Offer

    Exclusive Library Membership + FREE Wallet Balance