NAMES: Tshilidzi Wendy Mthukwane STUDENT NO: 37213172 ASSIGNMENT: NO1 INV3701 UNIQUE NUMBER: 683992 (A) Rate of return using CAPM = Rf+Bi{E(rm)-Rf} = 0.065+1.36(0.055) =13.98 The value of spiderman Limited’s share using two stage DDM Vo= Do(1+Gs)n (1+GL) Vo=2.25(1+0.15)2 (1+0.08) = 53.74 (r-GL) (0.1398-0.08) Time | Value | Calculation | Dt or Vt | Present Value1.1398 | 1 | D1 | 2.25(1.15) | 2.5875 | 2.2701 | 2 | D2 | 2.25(1.15)2 | 2.9756 | 2.2905 | 3 | D3 | 2
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Financial Decision Making - Spring 2016 Manuel A. Callizo Pecci Case Study - Pressco, Inc. (1985) Pressco Equipment Purchase History & Research - Pressco, Inc. is a company in the line of mechanical drying equipment. - Paperco is a potential customer of Pressco, Inc. for the purchase of equipment. - Jane Rogers is a marketing representative for Pressco. In the year 1984, Jane Rogers used to persuade Paperco`s management to purchase this new mechanical drying equipment, but it turned
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Advance Financial Management Graduate Business Administration 645 CRN: 11046 Building 163 – Room 2032 Winter Quarter 2013 Wednesday: 6:00-8:50 Paul Sarmas www.csupomona.edu/~psarmas CATALOG DESCRIPTION: A seminar course in finance utilizing comprehensive cases to simulate the role of the financial manager. 3 seminar-discussion. Prerequisite: GBA 546, all required 500-level courses, and microcomputer proficiency. Concurrent enrollment in GBA 646. Unconditional standing requirement
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Pressco Case Apr 30. 2015 * Recommendation The management of Paperco would have to buy the new drying equipment via binding contracts before rumored tax legislation was passed * Problem When was the best situation to replace the old drying equipment of Paperco, Inc that would enable the company to avail greater cost savings? * Rationale for Decision The cost saving associated with implementing the new drying equipment was influenced by tax policy, fuel cost, economic outlook
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argument. Show all computations in your analysis. (30 points) Answer the following questions from Pressco Inc. case. We worked out a base case of scenario A with no change in tax laws in class. Start with that scenario assumptions as given and answer the following questions. Q3. (Scenario B) What is the net present value of the mechanical drying equipment investment opportunity (as of December 1985) assuming a 12% cost of capital for Paperco and assuming (a) the new tax proposals are enacted,
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reconsider, his anticipated expansion and plans for additional debt financing? c. As the banker, would you approve Mr. Clarkson’s loan request; and if so, what conditions would you put on the loan? Thursday, January 26: SureCut Shears, Inc. a. Evaluate SureCut’s financial performance using standard ratios. b. Why can’t SureCut repay it’s loan on time? In addressing this question, you may find it useful to construct a “sources and uses” statement for the period
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