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please help me to solve d, e, f (18 points) Exercise 3 Value based controlling shareholder value concept In shareholder value approach is calculated by
please help me to solve d, e, f
(18 points) Exercise 3 Value based controlling shareholder value concept In shareholder value approach is calculated by the following formule ----- a Please came whe abbreviated The management of a company es value based controlling sprach decide on project which has the following cash-fow forecast The project is estimated to exceed the risk of the market by 50% The company has a tax rate of 25% and pays an interest rate of 2.000 pa for its dett Market's riskless rate currently 1.500% pa and market excess retum is expected to be 6.000 Please calculate the vale (NPV, n of the project which is forced by 100% come cate the vak"Nev, not the project which in financed by feauty 22 As the tret present value of project negative in case of the state introduces subidy on which payments in the years 1, 2 and 3 are based Once the bid is paid in one of the year only 75% of the subsidy S. in another year even 125% of the wis pad Please send the provided cash flow by adding three subsidy S-based payments me provided table so that the value of the project is maximised Pease calcule one of the tree by payments which lead to the maxime value of 180,- of the project X It is financed by 100% Exam12 TL222 (2009 Page of Some months later the senior management of the company decides on another project Y which is analysed by applying a different) weighted average costs of capital rate (nacel Project Y requires an investment 1 ) in period and leads to a positive cash-flow Crf in period T. Proty Before calculating the value of project Y controlling department provides some calculations if interest rates are increased by ipa: I all interest rates are increased by i% pa the value of project Y does not change, It. If in case of L.) the tax rate is additionally doubled the absolute) effect on the equity part is twice the effect on the debt part L. 1 (in case of L.) the B-factor is reduced by the total effect equals the resulting effect if only the debt rate to were increased Please calculate one weight of capital (i.e. either oor xe (in %). (18 points) Exercise 3 Value based controlling shareholder value concept In shareholder value approach is calculated by the following formule ----- a Please came whe abbreviated The management of a company es value based controlling sprach decide on project which has the following cash-fow forecast The project is estimated to exceed the risk of the market by 50% The company has a tax rate of 25% and pays an interest rate of 2.000 pa for its dett Market's riskless rate currently 1.500% pa and market excess retum is expected to be 6.000 Please calculate the vale (NPV, n of the project which is forced by 100% come cate the vak"Nev, not the project which in financed by feauty 22 As the tret present value of project negative in case of the state introduces subidy on which payments in the years 1, 2 and 3 are based Once the bid is paid in one of the year only 75% of the subsidy S. in another year even 125% of the wis pad Please send the provided cash flow by adding three subsidy S-based payments me provided table so that the value of the project is maximised Pease calcule one of the tree by payments which lead to the maxime value of 180,- of the project X It is financed by 100% Exam12 TL222 (2009 Page of Some months later the senior management of the company decides on another project Y which is analysed by applying a different) weighted average costs of capital rate (nacel Project Y requires an investment 1 ) in period and leads to a positive cash-flow Crf in period T. Proty Before calculating the value of project Y controlling department provides some calculations if interest rates are increased by ipa: I all interest rates are increased by i% pa the value of project Y does not change, It. If in case of L.) the tax rate is additionally doubled the absolute) effect on the equity part is twice the effect on the debt part L. 1 (in case of L.) the B-factor is reduced by the total effect equals the resulting effect if only the debt rate to were increased Please calculate one weight of capital (i.e. either oor xe (in %) Step by Step Solution
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