1 2 3 4 5 6 7 8

-900 40 40 40 40 40 40 40 40

r/2 5.31%
r 0.106299
r(1-t) 0.065905

0.12

0.07

0.12
4.8

0.8033
Wd 0.45 8.79268
We 0.55
 9 10
40 1040

63 220 283
0.222615 0.777385

26.92308

18.4
 400000 400000 400000 400000 400000 400000 400000 400000

₹ 7,999,687.64
400000 10400000
Annual FCFF 500000000 -100 48 52
Earnings 400000000
g 2%

China Project
FCFF1 48000000
FCFF2 52000000
FCFF3 54400000

Dividend per share 4

Re
equity beta 1.3 10.516
risk premium 4.82
risk free 4.25

Rd 9.25
t 37.5
Rd(1-t) 5.78125

market value of equity 2400

market value of debt 900
total 3300
Wd 0.27272727
We 0.72727273

WACC 9.22470455

D/E(kruspa) 0.375
D/E (industry) 0.3

Beta(f,l) 1.3
Beta(f,u) 1.05316456

Beta(project,l) 3.686
china equity premium 1.88

Re (project+china) 28.9467089
Re (project) 22.0168861
54.4 WACC (project+china) WACC (project)
10.41 9.03
NPV 26.54 29.74
Company Sales (mn) Market value of equity (mn)

Relevant 752 3800

ABC 843 2150
Opus Software 211 972
Industry Average 6922

No of shares to be issued 1 mn
price per share 8
market value of equity 8 mn
offering price 7 to 12 dollars

debt 2.4
no of outstanding shared 1 mn
D/E for TagOn 0.15
market value of debt 2.156 mn
coupon rate 12.50% 0.3
Risk free rate 5.25%
Equity risk premium 7%
tax rate 23%

Industry debt 19.5

Industry equity 6922
Industry D/E 0.00282

Beta(comparable,levered) 2.634
Beta(comparable,unlevered) 2.27459

Firm D/E 0.01

Beta(firm,levered) 2.29210718019198
Re (firm) 21.3%

Beta(TagOn, levered) 2.53730828570424

Re (TagOn) 23.011157999929600%
Rd (TagOn) 15.57%
Rd *(1-t) 11.99%

Wd (TagOn) 0.130434782608696
We (TagOn) 0.869565217391304

WACC 21.57%
market value of debt (mn) equity beta tax rate share price Asset Beta/Beta(firm, unlevered)

0 1.702 23% 42 1.70

6.5 2.8 23% 24 2.79
13 3.4 23% 13 3.37
19.5 2.634 2.27459

2.156 -0.3 -0.3 -0.3 -0.3

15.57%

300000
m, unlevered)

-2.7
market price per share 28
Dividend per share (Do) 2.18
Dividend payout rate 40%
ROE 15%
Beta for common stock 1.3
Expected rate of return on market portfolio 13%
Risk free rate of return 4%

growth rate of dividend payout (g) 0.09 0.157

Re 0.167857
Beta (comparable, levered) 1.75
D/E (comparable) 0.9
tax rate (comparable) 35%
Beta (comparable, unlevered) 1.104101

D/E (firm) 1
tax rate (firm) 30%
Beta (firm, levered) 1.876972