You have planned to invest equal amount of 50,000 at

You have planned to invest equal amount of 50,000 at the end of every year from year 2000 to 2010 at the rate of 18% and then kept the amount in the same bank at the same rate till the end of 2017. At the start of this year (2018), you have planned to start a business with the initial capital of your own money which you have started saving since year 2000 till the end of last year (In case of not starting your own business, still you can keep investing the amount at same rate). Additionally, you have issued common stocks of 200,000 which can be sold in market at Rs 50 today with the expectation of dividend of Rs 5 next year and perpetual growth of 10%. You have also issued preferred stocks of 500,000 with current price of Rs 50, face value of 100 and dividend of 10%. Due to lack of funds, you have also borrowed 200,000 from a bank at a rate of 12% annually. You have find an opportunity of investing all this capital with the internal rate of return of 14%. Should you go for this investment or not keeping in mind your WACC? If you want to go for this investment, then what are the main reasons? If not, justify your answer.

How Our Website Works


It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.


All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.


Next, we match up your order details with the most qualified freelance writer in your field.


Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!


Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.