Professional Documents
Culture Documents
ASSIGNMENT NUMBER 1
Cost of capital
AMIT KUMAR BABEL
34th BATCH
DIVISION-E
340558
Introduction= This assignment is based on cost of capital, in this assignment I select 2 companies
Dr lal path labs = this company started in 1949 by Dr. s.k. lal, in Delhi.
In 2016 annual report shows that company earns 658 cr. Rs.
As revenue and the capital is mixture of equity share capital and longterm
borrowing. The perportion of equity and debt. Is 0.28:1
SHAREHOLDER'S FUNDS
NON-CURRENT ASSETS
NON-CURRENT INVESTMENTS
CURRENT INVESTMENTS
Dr Lal PathLabs
---------
---------
- in
Standalone Profit & Loss account Rs. Cr.
---------
---------
-
Mar 16
12
mths
INCOME
Revenue From Operations [Gross] 765.4
EXPENSES
12
mths
12
mths
OTHER ADDITIONAL INFORMATION
Shilpa pl
Mar-16
12 mths
COST OF EQUITY IS WHICH COMPNY PAYS TO THEIR share holder as dividend, because they take risk
on behalf of the company
Comment=
Dr.lal path lab. Company have 1.53% cost of capital and shilpa medicare has 2.18 %
cost of capital that means it is Cleary shown that shilpa medicare has higher risk from investors
point of view.
Q)2.
Equity
Debt equity ratio = this ratio is used to measure the leverage of the company on the
proportion of debt and share holders equity.
For these companies I can say that shilpa medicare I having higher risk because of the loans
which are taken by them they have to pay the loan.
Q)4.
Ans. The new avenue for new financing , my sector is pharma so the best way to financing
the sector is equity mutual funds, employee provided fund, purchase bonds of govt.
securities.
The end