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I need to finish this case study by using EBIT NO PLAT WACC etc........ i just need calculations I can finish the memorandum myself FINA4330:

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I need to finish this case study by using EBIT NO PLAT WACC etc........ i just need calculations I can finish the memorandum myself

image text in transcribed FINA4330: Corporate Finance Spring 2017 Case Study 1: Ocean Carriers It is your job to evaluate the commissioning of a new capesize carrier by Ocean Carriers in response to a lease, as described in the case study writeup. In answering the below questions, assume Ocean Carriers' discount rate is 9%. 1. Should Ms Linn purchase the $39M capesize? Make 2 di\u001berent assumptions. First assume that Ocean Carriers is a U.S. \u001crm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on pro\u001cts made overseas and are also exempted from paying any tax on pro\u001ct made on cargo uplifted from Hong Kong. 2. What do you think of the company's policy of not operating ships over 15 years old? Your group's answers to these questions should be written up in a memorandum as detailed in the syllabus: Teams will prepare a memorandum of up to two (2) pages in length, which may be accompanied by up to three (3) pages of additional numerical exhibits and calculations, which you may refer to in the memorandum's text. Font size may be no smaller than 11, nor larger than 14, and line spacing should be either 1.5 or 2. Longer is not necessarily better. The highest scores will go to teams that answer the questions succinctly. In other words, get to the point. Feel free to make any reasonable assumptions necessary to answer the problem, although be sure to provide a good reason for each assumption. DUE DATE: Printed copies are due at the beginning of class February 22nd, 2017. 1

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