JOB number 1
The company is considering the implementation of these investment projects.
IRR,% Total investments (mln. Rubles)
Project A 25,200
The project is 20 350
Project C 15850
Project D 30200
Project E 35600
The sources of investment financing are.
1. The loan amounting to 1.2 billion. Rub., The rate of 12% per annum;
2. An additional loan of $ 800 million. Rub., The rate of 25% per annum;
3. Retained earnings in the amount of 800 mln. Rubles;
4. Issue of preferred shares, guaranteed dividend of 20% per annum, the cost of accommodation - 10% of the issue. The current market price of the preferred shares of 200 rubles.
5. Issue of ordinary shares. Expected dividend of 30 rubles. per share. The current market price of 150 rubles. The growth rate of dividends - 5% per year. The cost of placement of 10% of the issue.
The company adheres to the long-term target capital structure following:
Loan capital - 20%
Preferred shares - 10%
Shareholders' equity - 70%.
To form an optimal program funding enterprise under these conditions.