江湖救急~~~business finance的计算题~ 完全不会~郁闷~

ice~芊芊

各位大虾们~ 晚上写完了marketing和french的作业~ 还有个BF的~{:4_141:}
我已经写一个晚上直到现在还在纠结这些题~ 实在是不会写了~

谢谢大家帮忙~
Question 3 [13 marks]
From the recently published financial statements for Entroc Ltd you have obtained the following information

Balance Sheet as at 31 March 2011

Long-term Debt                                                                                     $
Bonds: Par $100, semi annual coupon 14% p.a., 6 yrs to maturity        1,000,000

Equity
Preference Shares: Par $10, annual dividend 60 cents per share             100,000
Ordinary Shares: - 1 million issued                                                     2,000,000
TOTAL                                                                                             $3,100,000

Also from the financial markets you have ascertained the following:
 Yield to maturity on 6 yr Entroc Ltd corporate bonds: 6% p.a.
 Required return on Entroc Ltd preference shares: 9% p.a.
 Entroc Ltd ordinary shares last dividend declared $0.20
 Forecast future growth rate of Entroc Ltd ordinary share dividend: 5% p.a.
 Required return on Entroc Ltd ordinary shares: 12% p.a.

1. Calculate the intrinsic/market valuation on 31 March 2011 of one Entroc Ltd:
(i) bond                   这个会
(ii) preference share这个会
(iii) ordinary share. 不会{:4_141:}
2. Calculate the total intrinsic/market valuation on 31 March 2011 of Entroc Ltd’s: 这整个都不会
(i) long-term debt
(ii) preference shares
(iii) ordinary shares.
3. Compare the book and market values for each of the long-term sources of finance currently used by Entroc Ltd and briefly explain why any differences that you observe have occurred.

(iii)        Ordinary share        = Dividend / (required return – dividend growth rate)
= $0.20/ (0.12 – 0.05)
= $2.8571



2 Total intrinsic/market valuation on 31 March 2011 of Entroc Ltd:
(i)        (i) Long Term Debt        = $1,000,000 /$100 x $139.816
= $71,5226

(ii)        Preference share        =  $100,000 / $10 x $6.6667
= $1,499.9925

(iii)        Ordinary share                = $2.8571 x 1,000,000
= $2,857,100
3
        Intrinsic value($)        Book value($)
Long Term Debt               
Bonds        1,398,100        1,000,000
Equity               
Preference share        66,670        100,000
Ordinary Share        2,857,100        2,000,000
Total        4,321,870        3,100,000
Variance from Book value        +1,221,870(39.42%)

给点lecture slide呗

1.  iii)
Required rate of return = 12%
Growth rate of dividend = 5%
The market value of one ordinary share = D1/(required rate of return - growth rate)
= $0.20 * (1+5%) / (12% - 5%) =$3.00 per share

哇。。今天都要交了哦

1.  iii)
Required rate of return = 12%
Growth rate of dividend = 5%
The market value of one ordinary share = D1/(required rate of return - growth rate)
= $0.20 * (1+5%) / (12% - 5%) =$3.00 per share

2. i)
Present value of one bond = present value of bond's face value + present value of total coupons
= $100/[(1+3%)^12] + $7 * [(1-1/1.03^12)/3%]
=$70.1379 + $69.6780
=$139.82

10,000 bonds par $100

Total market value of bonds = 10,000 *$139.82

ii)
Total market value of preference shares
= market value of one preference share * number of shares issued

iii)
Total market value of ordinary shares = $3.00 *1m= $3 m

回复 2# Yawn


    我都交完回家订机票中了。。。。。。

谢谢你的500金钱啊

回复 10# qiuls001


    客气~~~~