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The questions are related to each other thats why i posted all of them altogether c) How would the bond price calculated above change if
The questions are related to each other thats why i posted all of them altogether
c) How would the bond price calculated above change if Xpress-Oh published a profit warning today, stating that the full-year results would be a large loss instead of a healthy profit as expected? Explain verbally, clearly and in detail how this would affect the pertinent variables in your calculation in part b) above. [7 marks) (type your answer here] d) Xpress-Oh is considering issuing another bond of EUR 100 million to fund the new manufacturing facilities. However, in view of developing liquidity concerns the company cannot be certain of sufficient investor appetite for the offering. Xpress-Oh has therefore requested that you make an additional investment appraisal calculation, assuming capital rationing. Explain your investment recommendation based on this alternative investment criteria and include your calculations. [4 marks) [type your answer here) c) How would the bond price calculated above change if Xpress-Oh published a profit warning today, stating that the full-year results would be a large loss instead of a healthy profit as expected? Explain verbally, clearly and in detail how this would affect the pertinent variables in your calculation in part b) above. [7 marks) (type your answer here] d) Xpress-Oh is considering issuing another bond of EUR 100 million to fund the new manufacturing facilities. However, in view of developing liquidity concerns the company cannot be certain of sufficient investor appetite for the offering. Xpress-Oh has therefore requested that you make an additional investment appraisal calculation, assuming capital rationing. Explain your investment recommendation based on this alternative investment criteria and include your calculations. [4 marks) [type your answer here) Step by Step Solution
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