Base case With Recap Opening Book values (as on Dec 2012) Debt 2000 2000 Common stock

1000 1000 Retained earnings 2000 2000 Total Equity 3000 3000 Income statement (for 2013) EBITDA

Depreciation
EBIT Interest expenses Tax @ 40% PAT Dividends Current Stock price (Rs. per share) Number of shares (Issued at Rs. 10 originally) EPS DPS Capital expenditure incurred Change in working capital from last year Other Current Information P/E M/B Dividend payout Dividend Yield Expected dividend growth Closing Book values (as on Dec 2012) Debt Common stock Retained earnings Total Equity

1150 150 1000 200 320 480 120 25 100

1150 150 1000 200 320 480

500 200

500 200

6.25

25% 5% 5%

1000 0

Required debt Sp1xN1 +1000 Sp1 N1

-190

-70 3000 4000 40 75

Base case With Recap Opening Book values (as on Dec 2012) Debt 2000 2000 Common stock 1000 1000 Retained earnings 2000 2000 Total Equity 3000 3000 Income statement (for 2013) EBITDA

Depreciation
EBIT Interest expenses Tax @ 40% PAT Dividends Current Stock price (Rs. per share) Number of shares (Issued at Rs. 10 originally) EPS DPS Capital expenditure incurred Change in working capital from last year Other Current Information P/E M/B Dividend payout Dividend Yield Expected dividend growth Closing Book values (as on Dec 2012) Debt Common stock Retained earnings Total Equity

1150 150 1000 200 320 480 120 25 100 4.8 1.2 500 200

1150 150 1000 200 320 480 120 40 75 6.4 1.6 500 200

Base case With Recap 0.5 3 1 0 0

0.5 0.5

5.2083333 6.25 0.7440476 1.271186441 25.00% 5.04% 5% 25% 4.20% 5%

0.5 1 0.5 0

0.5

2190 1000 2360 3360

3190 750 1610 2360 250 750

2 0 1 0

1 1 1 0

Required debt

-190

-190

Sp1xN1 +1000 Sp1 N1

3000 4000 40 75

-190

-190

marks are shown in adjacent and respective cells here. 0.5 marks for calculating dividends 3 marks for calculating current stock price 1 marks for calculating no. of shares 0.5 for calculating EPS 0.5 for calculating alculating EPSDPS

0.5 for calculating price earning ratio 1 mark for calculating M/B ratio 0.5 for calcul;ating dividend payout 1 mark for calculating dividend yield for Recap

0.5 mark for calculating M/B ratio with Recap

2 mark for calculating Debt 1 mark for calculating Debt for Recap 1 mark for calculating common stock for recap 1 mark each for calculating retained earning in both case 1 mark for WACC calculation 2 mark for D/V calculation

lculating M/B ratio with Recap