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Need urgent. will definitely upvote and rate subject: Corporate financial strategies a. Discuss three factors lead to financial distress of Air Asia. (6 marks) b.
Need urgent. will definitely upvote and rate
subject: Corporate financial strategies
a. Discuss three factors lead to financial distress of Air Asia. (6 marks) b. Explain four pre defense strategies Air Asia should take in order to protect against potential merger and acquisition. (8 marks) c. Suppose Air Asia's financial statements indicate the following financial ratio values: X: = 32%, X; = -20%, X; = -10%, X4 = 60%, Xs = 120%. It uses the Altman model: Z = 0.013(X) + 0.015(X) + 0.035(X) + 0.007(X.) + 0.88(X:). Using this model, is the firm likely to go bankrupt within one year? 6 marks) d. The Financial Officer of Air Asia has given you a task to evaluate a proposed project. The DCF-NPV of the project is -RM150,000. However, by investing today, you think you might have a future growth option to expand but it would cost you an additional RM240,000 (in today's RM) to have this option. If this future opportunity occurs, you estimate the present value of this option will be RM580,000. However, there is only a 60 percent chance of this occurring. Does the growth option make investment in the proposed project a positive NPV? (5 marks) a. Discuss three factors lead to financial distress of Air Asia. (6 marks) b. Explain four pre defense strategies Air Asia should take in order to protect against potential merger and acquisition. (8 marks) c. Suppose Air Asia's financial statements indicate the following financial ratio values: X: = 32%, X; = -20%, X; = -10%, X4 = 60%, Xs = 120%. It uses the Altman model: Z = 0.013(X) + 0.015(X) + 0.035(X) + 0.007(X.) + 0.88(X:). Using this model, is the firm likely to go bankrupt within one year? 6 marks) d. The Financial Officer of Air Asia has given you a task to evaluate a proposed project. The DCF-NPV of the project is -RM150,000. However, by investing today, you think you might have a future growth option to expand but it would cost you an additional RM240,000 (in today's RM) to have this option. If this future opportunity occurs, you estimate the present value of this option will be RM580,000. However, there is only a 60 percent chance of this occurring. Does the growth option make investment in the proposed project a positive NPVStep by Step Solution
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