Capital Structure of the Company - Finance Assignment Help

Assignment Task :

PART A: Question 1  
a. Elaborate on the significance of weighted average cost of capital (WACC) in Corporate Finance. Why is WACC used as hurdle rate for investment appraisal projects? 
b. Consider the following financial statements of NSE India listed Bharti Airtel Ltd. (NSE Ticker: BHARTIARTL) for FY2018-19.

Using the information provided in the financial statements,
i. Compute the cost of debt, Kd.  
ii. Compute the cost of equity, Ke if the beta of the company is 0.91, Rf in India is 6% and market risk premium in India is 4%. 
iii. Compute the capital structure of the company.  
iv. Compute the overall WACC of the business.
v. What can you comment about the health of the business using your computations? If say the average industry WACC is 10%, how would you interpret this company’s WACC based on your computation?

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