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Ongc and Jsw and Shree

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Ongc and Jsw and Shree
ONGC

Ke – cost of equity

|Rm – expected returns on emerging markets |13 |
|Rf – risk free return |8.5 % |
|Beta |0.2835 |
|Ke = Rf + beta( Rm-Rf) |12.18 % |

Market value of equity

|Issued, subscribed and paid up equity shares (i) Rs 5 Face value |8554000000 |
|Current Market Price |281.6 |
|Market Value of Equity |(i)*(ii) = Rs. 240880.64 crores |

Being debt structure absent in Nalco the cost of debt is zero, Therefore WACC ( Weighted Average Cost of Capital)

|WACC |KePe + KdPd + KpPp |
|WACC by (ONGC) |12.18 % |

Peer comparison

JSW Steel ltd

Ke – cost of equity

|Rm – expected returns on emerging markets |13% |
|Rf – risk free return |8.5 % |
|Beta |0.5525 |
|Ke = Rf + beta(
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