Ivestitsionnye practical strategies, 10 jobs.
Task 1. The company received credit for one year in the amount of 10 million. P. with the condition of the return of 16 million. p. Calculate the interest and discount rate.
2. Specify in the bank to 1.2 million. P. The bank pays 12.5%. It is supposed to enter all the capital in the joint venture, with the projected doubling of capital in 5 years. Whether to accept this offer?
Task 3. You have 10 thousand. P. and would like to double that amount in five years. What is the minimum acceptable value of the interest rate?
Task 4. The Bank offers a 15% per annum. What should be equal to the initial contribution to be in 3 years on account of 5 million. P.?
Task 5. What is your choice - getting $ 5,000. A year or 12 000 dollars. 6 years, if the discount rate is equal to: a) 0% b) 12%; c) 20%?
Task 6 Find an optimal capital structure based on the conditions shown in Table. 1.
Methodology for the job
The total amount of money you want to pay for the use of a certain amount of financial resources, expressed as a percentage of this amount is called the cost of capital.
With some degree of conditionality can be argued that there is correlation between the prices of individual sources of venture capital:
ke kb kp s kr p kc s,
where ke - price source "bank loan"; kb - price source "bond issue"; kp s - price source "preferred shares"; kr p - the price source "retained earnings"; kc s - price source "ordinary shares".
The price of capital (Weighted Average Cost of Capital, WACC,%) is calculated as a weighted average:
where kj - the price of the j-th source of funds,%; dj - the proportion of j-th source of funds in their total amount.
Task 7. The project requires an investment of US $ 160,000., Is to receive an annual income of $ 30 000. For fifteen years. Assess the feasibility of such an investment, if the discount rate - 15%. Calculate criteria: NPV, PI, IRR, PP.
Task 8. There are two investment object. The amount of capital investment required is the same. The value of planned revenue for each project is not defined and is given by the following distribution table. 2.
Task 9. To organize a new business requires an amount of $ 200 000. There are two options:
1 Issue of unsecured debentures in the amount of $ 100 000. At 10% per annum plus $ 100 000. Ordinary shares of $ 1 .;
2 Issue of unsecured debentures in the amount of $ 20 000. At 10% per annum plus $ 180 000. Ordinary shares of US $ 1.
Earnings before interest, tax and dividends projected for next year amount (thous. USD.): 2006 - 40; 2007 - 60; 2008 - 80. Determine the earnings per share, which shareholders can expect in each of the options.
Task 10. The Company has three sources of capital: bonds, common and preferred shares. Their estimates are given in Table. 3.
Required to find the weighted average cost of capital.