Cheat Fin 401 Final

8/17/2019 Cheat Fin 401 Final

1/18

• NAL = Cost – PV(ATLP) + PV(Maintenance) – PV(CCATPV(Salvage)

• = 4,000,000 – 2,64,4!" + #,$" – ","!#,"02 – "4",

•

= %40,#!$• &n'ieen

• NAL = Cost –PV(ATLP) + PV(Maintenance) –PV(CCATSPV(Salvage)0=

• ,#00,000 –PV(ATLP)+ $",#" –2,2"!,26! –#2*,$!4P

%#,!4,!• N = 4, & = *", PV = %#,!4,!, co-./te ate1ta

",640,26!3eoe1ta lease .a-ent = ",640,26!5(" –%2,#2$,4

• Ne 3eta

• 3eta = (/nlevee' 7eta)(" + 859) = ("#)(4-5"6-) =


2/18

•MVP = (!#0,000)(0) = 60-

• MV8 = (4#,000)(",000)("") = 4*#-

• MV9 = (600,000)(*0) = #4-

• Total MV = 60- + 4*#- + #4- = "6$#-

•

P = 60-5"6$#- = $6!


3/18


4/18


5/18


6/18

• Ass/-e o/ anse to t?e .evio/s >/estion is (itBs not)

• ?at is D/lEBs ACCFA)"$$23)"2#6C)"26!8)"#4*9)None o

a7ove• MV9= %"00 #0,000= %#-

• MV8= %4- 0= %$2-

• V = 8 + 9= $2- + #- = %2-

•9= #52G 8= $252

• ACC = 9H9+ 8H8("1TC) = (#52)(") + ($2("0)("104) = "$$2


7/18

NPV o ./c?ase• NPV = PV(CI) + PV(CCATS) + PV(NCS) + PV(N

• PV(NCS) = 1#00,000 + #0,0005(""):6 = 1%4!",!• = $#2,!!6 + "$4,!"# – 4!",!!6 – ,!"" = %!,0

• After tax cost of debt

• N = 40, PMT = !0, IV = ",000, PV = 1","00 co

= 6$"• Ate1ta cost o 'e7t = (6$")(" – 0$) = 442


8/18

• NPV = V3 1 cas? cost = (%40)(6,000) + $0,000 (6,000) = %6,000

• taEeove .e-i/-

• Ne s?aes iss/e' to Taget = 24,000(2) = 4,0s?aes

• V3T= V3 + VT + Sneg = (%"#)(0,000) + (%2(24,000) + 260,000 = %2060-

• Pice .e s?ae = V3T5ne n/-7e o s?aeso/tstan'ing = 2060-5(0,000+4,000) =

• "60*$

• Pe-i/- = ("60*$)(4,000) – (%2#)(24,000) =%"!2,#00


9/18

8ivi'en'• PV = 2200, N = 2, & = "0, co-./te PMT = %"2

• T?e investo ants "00 "26 = ",26• T?e investo gets "00 0 = 0

• T?e investo ?as %$ eta, ?ic? t?e ill /se-oe s?aes

• Pice at ti-e " = "6*45"" = %"#40

• &nvesto can 7/ $5"#40 = 2#"* s?aes


10/18

• l' DD8 .iceJ

• P59 atio = Pice59PS

• "6 = Pice5(600,0005240,000)

• Pice = %40

• Ne P59 atio = 405(#0,00052*0,000) = "$6

• MaEet oole', ass/-e P59 constant at "6J

• "6 = Pice59PS

• "6 = Pice5;(600,000+2#0,00)5(240,000+#0,000

• "6 = Pice52*$"

• Pice = %46*0


11/18

• 9ig?ts .ice

• K o ig?ts to 7/ a ne s?ae = ol' K s?as?aes to 7e iss/e' = ",#00,0005!#,000 = 2

• 91ig?ts .ice = ((N)(C/ent .ice) + S/7 (N+") = ($$(20) + $0)5(20 + ") = %$26

• Call o.tions ATM, P/t o.tion ATM

• Call o.tion .o@t = (2)("00)(1) – (2)("00)(

= 1%"#0• P/t o.tion .o@t = (2)("00)(1) + (")("00)%"#0

• Total .o@t = 1"#0 + "#0 = %0


12/18

ACC

•

Val/e o @- = 9 + 8 = (*0)(600,000) + (4#,000(",000)("") = #4- + 4*#- = "0$#-

• e = #45"0$# = #2"!

• ' = 4*#5"0$# = 4!$

• He = 8"5P0 + g = (*)("0#)5*0 + 00# = "##

• ACC = eHe + 'H'(" – Tc) = (0#2"!)("##) +(04!$)("0)(" – 0$) = ""4$


13/18

Convesion

•

S3VJ PMT = %$#, N = "0, & = 4, 8ivi'e 7Co-.o/n'ing IV = ",000 PV = *#*4#

• Convesion val/e = convesion atio stocE .icval/e5convesion .ice)(stocE .ice) =

• ("000540)($#0) = *62#0

• Min .ice = -a(S3V, convesion val/e) = -a(*62#0) = *62#0


14/18

•Val/e o one aant = (selling .ice –S3V)5(K o aants .e 7on')

•

= (*!20 – 2!0)5"2 = %"$$4•A # o " stocE s.lit is e>/ivalent to a ")5 "

•Val/e o co-.anBs e>/it

•Val/e = 93&T("1Tc)5He = #0-(" – 02#= 2,46",#$*


15/18

•3eaEeven Pa-ent

•0 = "#- – PV(ATLP) – cca4!!,!6# –salv2*!,##4

•PV(ATLP) = !24,6"

•PV = !24,6", N = #, & = $$, co-.PMT = %"#4,4*!

•

3TLP = ATLP5(" – Tc) = "#4,4*!5(" – 020,*0$

•Val/e o co-.an

•V = (#0-)(" – 02#t)50"$costoe>/i

%2,46",#$*


16/18

• He>/ie' ate o et/n

• VL = V + Tc8 = 246"#$* + "#0-(02#$2#,*6",#$*

• 9 = $2#,*6",#$* – "#0- = "!#,*6",#$*• H9 = H + (H – H8)(859)(" – Tc)

• H9 = "$ + ("$ – 4)("#0-5"!#,*6",#$*)(" = "!#

• 39 97it• (93&T – $,$00)52,200 = (93&T – #,#00)5",0

• "(93&T – $,$00) = 22(93&T – #,#00)

• 1493&T = 16",600

• 93&T = %"#,400


17/18

•l' P59 atio = 05("2-540,000) = $

•Ne 9PS = ("2- + #00,000)5(40,00

(0#)("#0,000)) = $06•Ne P59 = Ne Pice5Ne 9PS $2 =Pice5$06 Pice = %*!*2

•NPV = 0 -aEet .ice o DD8 stas

sa-e %0•Ne P59 = l' .ice5Ne 9PS = 05$26"4


18/18

• Ac>/ie' 7 stocE

• Pice = (V(A3C) + V(O) + Sneg)5Nes?aes

• = (("2#)(#0,000) + (#0)(2#,000) + "#0,00(#0,000 + "#-5"2#)

• = "2$$*

• NPV = 0 3Bs s?ae .ice stas sa-e• 0 = V(Ii- T) + Sneg – cost

• 0 = (2#)(24,000) + 260,000 – (K o s?aes(%"#)

• K s?aes to Ii- T = ;(2#)(24,000) +

Cheat Fin 401 Final

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