=6/Cyclone case study The Cyclone group operates in three sectors: the sale of commercial shipping equipment, shipping

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=6/Cyclone case study The Cyclone group operates in three sectors: the sale of commercial shipping equipment, shipping of goods by sea between mainland India and Sri Lanka (the group owns two container ships), and a small shipyard which oversees the careenage of most of the boats in Sri Lanka.

The three divisions are listed on the Mumbai Stock Exchange.

Equipment sales division Maritime shipping division Shipyard Market capitalization 2160 18 520 632 Shareholders’ equity 1580 10 512 824 Net debt (estimated value) 812 212 −1356 Sales 22 210 23 724 701 EBIT 405 1625 82 Net income 226 1057 −24

βE observed 0.8 0.5 1.2

βD estimated 0.1 0 0.3 Tax rate 35% 35% 35%

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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