WORKSHOP FOR SOLVING PROBLEMS No. 4

WORKSHOP FOR SOLVING PROBLEMS No. 4
on topic 4. "Management of own and borrowed capital of the organization"


Task 1. The organization finances its activities at the expense of its own capital, attracting a bank loan, as well as a commodity loan. The cost of equity is 15%, its share in the total capital is 40%; the cost of a bank loan - 18% with its share of 35%; cost of trade credit 16%. In the reporting period, the share of equity decreased by 10%, and bank credit increased by 10%, respectively.
• Determine the weighted average cost of capital (WACC) at the beginning and end of the reporting period.
• What conclusions can you draw from your results?

Task 2. Calculate the cost of equity of a joint-stock company based on the following data:
a) the authorized capital of the JSC consists of 12,000 preferred shares of 400 rubles each. and 180,000 ordinary shares of 250 rubles each, dividends in the past year were paid on preferred shares in the amount of 7.3%, on ordinary shares - 56 rubles. per share;
b) additional capital is 10.6 million rubles, reserve capital is 2.2 million rubles, retained earnings is 9.8 million rubles.
What conclusions can you draw from the results obtained?

Task 3. Calculate the average cost of borrowed capital attracted from various sources:
a) a bank loan of 12 million rubles. for a year at 11.5% per annum;
b) a bonded loan of 35 million rubles, a coupon rate of 8%, the cost of placing a loan of 2.4 million rubles;
c) a commercial loan of 10 million rubles, a 40-day grace period, a 2% cash discount;
d) 20% income tax.
What conclusions can you draw from the results obtained?

Task 4. Determine the effect of financial leverage based on the following data: sales profit - 16.5 million rubles; income tax - 20%; the cost of borrowed capital - 13%; financial independence ratio - 0.35; balance sheet total - 95 million rubles.
What conclusions can you draw from the results obtained?