AN ANALYSIS OF STOCK MARKET PERFORMANCE AND FUNDAMENTALS OF INFRASTRUCTURE CO...
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1. A PRESENTATION ON SOLIDAIRE INFRASTRUCTURE COMPANY BY:- DEEPAK KUMAR MANISH SINGH NORANG LAL SUMIT LATHER
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3. Infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, power grids, telecommunications, and so forth. Viewed functionally, infrastructure facilitates the production of goods and services; for example, roads enable the transport of raw materials to a factory, and also for the distribution of finished products to markets. In some contexts, the term may also include basic social services such as schools and hospitals. In military parlance, the term refers to the buildings and permanent installations necessary for the support, redeployment, and operation of military forces. ABOUT INFRASTRUCTURE
4. Summarization of the case study Solidaire Infrastructure Company has 3 business organized under 3 separate divisions. The cement division its manufacturing plant in Gujarat. It sells about 2/3 of its cement in Gujarat and the remaining quantity in Rajasthan and Gujarat, M.P. and Maharashtra. The power generation division, under a long term agreement, supplies ¾ its power generated to the government of Gujarat at an agreed price, which is periodically revised with mutual consent of the two parties. All three divisions are profitable and they have plans to expand their activities in the future.
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10. WACC There are two formulas for calculating WACC(Weighted Average Cost of Capital):- K0=WACC, Kd=cost of debt, T=tax rate, Wd= weight of debt, ke= cost of equity, We=weight of equity D=debt, E= Equity General Formula for calculating WACC is.. Where k1,k2,… are component costs W1,w2,… are weights of various types of capital employed by the company.