Based on the case below please construct the Transaction Sources & Uses and calculate the WACC Phatchance Hotel Properties, Inc Jack Von Crook, a hotel investor, is in the process of purchasing Phatchance Hotel Properties, Inc. (PHP) PHP operates two hotels in Miami, Florida with total of 800 rooms. He is anticipated to complete the necessary renovations on these properties by December 31, 2019 and open its doors for business on January 11, 2020 The estimated total cost of both properties is $300 million, plus additional $30 million for renovations. PMP estimated 2019 EBITDA of $40 million and outstanding debt of 540 million Capital Raising Jack needs capital to purchase and renovate the two properties as well as refinance in current debt outstanding Jack wil invest $90 million of equy. He received an approval for the bank loan for 3x2019 EBITDA and the cost of the financing will be paid in Corporate Bonda The pricing is as follows: Bank Loan @ 50% Fixed Rate, Corporate Bonds 08.0% Food Rate and the Equity expected return is calculated based on CAPM with risk free rate of 1,0% bota of 2e and equity mam return of 10.0% Transaction Uses Amount EBITDA 40,000,000 write the whole number ile 200.000.000 for $200 million EQUITY 90.000.000 Sheet1 inchat final wamchate Show earch for anything BI 257 PM ENG Based on the case below please construct the Transaction Sources & Uses and calculate the WACC Phatchance Hotel Properties, Inc Jack Von Crook, a hotel investor, is in the process of purchasing Phatchance Hotel Properties, Inc. (PHP) PHP operates two hotels in Miami, Florida with total of 800 rooms. He is anticipated to complete the necessary renovations on these properties by December 31, 2019 and open its doors for business on January 11, 2020 The estimated total cost of both properties is $300 million, plus additional $30 million for renovations. PMP estimated 2019 EBITDA of $40 million and outstanding debt of 540 million Capital Raising Jack needs capital to purchase and renovate the two properties as well as refinance in current debt outstanding Jack wil invest $90 million of equy. He received an approval for the bank loan for 3x2019 EBITDA and the cost of the financing will be paid in Corporate Bonda The pricing is as follows: Bank Loan @ 50% Fixed Rate, Corporate Bonds 08.0% Food Rate and the Equity expected return is calculated based on CAPM with risk free rate of 1,0% bota of 2e and equity mam return of 10.0% Transaction Uses Amount EBITDA 40,000,000 write the whole number ile 200.000.000 for $200 million EQUITY 90.000.000 Sheet1 inchat final wamchate Show earch for anything BI 257 PM ENG
