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Name: Swapnil Kamble

Roll No.: 17-MF-14

Subject: Mergers & Acquisition

Assignment No. 1

WACC Calculations:

Market Value Weightage Cost WACC


Equity 18,784.64 87.49% 13.952% 12.21%
Debt 2,686.03 12.51% 7.107% 0.74%
12.94%

Cost of Equity:

K e = Rf +  ( R m - R f )

Rf = 8.1%
Rm - Rf = 7.7%
 = 0.76

Cost of Equity = 8.1% + ( 0.76 * 7.7% ) = 13.952%

Calculated Beta:

Calculated = 0.76

Published Beta:

Source Beta Value


Topstockresearch 0.643
Reuters 0.27
Edelweiss 0.74
Economictimes 0.95
Yahoo Finance 1.08

Embedded g:

D1 = 2.58

Ke = 13.952%

P = 665.65

P = D1 / K - g

g = 13.56%
Regression Output:

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.3483
R Square 0.1213
Adjusted R
Square 0.1206
Standard
Error 0.0179
Observation
s 1235.0000

ANOVA
Significanc
df SS MS F eF
170.192
Regression 1 0.0547 0.0547 9 0.0000
Residual 1233 0.3962 0.0003
Total 1234 0.4509

Coefficient Standar Upper Lower Upper


s d Error t Stat P-value Lower 95% 95% 95.0% 95.0%
29.864 0.131 0.115 0.131
Intercept 0.1233 0.0041 8 0.0000 0.1152 4 2 4
13.045 0.876 0.647 0.876
X Variable 1 0.7620 0.0584 8 0.0000 0.6474 6 4 6

Scatter Chart:

Returns of Glenmark Vs Nifty500


0.04

0.02

0
-0.2 -0.15 -0.1 -0.05 0 0.05 0.1

-0.02

-0.04

-0.06

-0.08