国际财务管理答案Chap.pdf

该【国际财务管理答案Chap 】是由【小屁孩】上传分享，文档一共【25】页，该文档可以免费在线阅读，需要了解更多关于【国际财务管理答案Chap 】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。:..国际财务管理答案Chap公司内部档案编码:[OPPTR-OPPT28-OPPTL98-OPPNN08]:..CHAPTER18INTERNATIONALCAPITALBUDGETINGSUGGESTEDANSWERSANDSOLUTIONSTOEND-OF-:,,capitalhelong-:,.:..Answer:,:;:i)profitassociatedwiththeproject;ii)incrementaldepreciationallowance;and,iii)incrementalafter-,profit”-taxinteresttermin,--:TheAPVframeworkisavalue-:..internationalprojectsfrequentlyhavecashflowsnotencounteredindomesticprojects,:petewithanexistingproject(s),causingtheoldproject(s),thenewproject’sincrementalrevenueisthetotalsalesrevenueassociatedwiththenewprojectminusthelostsalesrevenuefromtheoldproject(s).:Ifprojectdebtisgreater(less)thantheborrowingcapacitycreatedbythecapitalproject,andtaxshieldsontheactualnewdebtareusedintheanalysis,theAPVwillbeoverstated(understated)makingtheprojectunjustlyappearmore(less):..Answer:’:TheAPVmodelisavalue-,-Millerequation,whyisthemarketvalueoftheleveredfirmgreaterthanthemarketvalueofanequivalentunleveredfirm:..Answer:Theleveredfirmhasagreatermarketvaluebecauselessmoneyistakenfromthefirmbythegovernmentintaxesduetotax-,roupsthanwhenthefirmisfinancedwithall-’:Thegoalofthefinancialmanageroftheparentfirmistomaximizeitsshareholders’(orAPV)fromthesubsidiary’sperspectiveyethaveanegativeNPV(orAPV)fromtheparent’sperspectiveifcertaincashflowscannotberepatriatedtotheparentbecauseofremittancerestrictionsbythehostcountry,orifthehomecurrencyisexpectedtoappreciatesubstantiallyoverthelifeoftheproject,,ahighertaxrateinthehomecountrymaycausetheprojecttobeunprofitablefromtheparent’’.:..Answer:’,thefirm’smanagementhasalternativepaths,oroptions,,thefirmmayhaveatimingoptionaswhentomaketheinvestment;itmayhaveagrowthoptiontoincreasethescaleoftheinvestment;itmayhaveasuspensionoptiontotemporarilyceaseproduction;and,’:TheprojectNPVmightbenegativefromtheparentfirm’,ifthePPPassumptiondoesnothold,suchthattheactualfuturerealexchangeratehasdepreciatedinforeigncurrencyterms,theafter-taxcashflowswillyieldlessunitsofhomecurrencyfromthe:..parentfirm’sperspectivethanexpected,possiblyresultinginanegativeNPV.:..$70million,ofwhich$,400,000,000,ofwhichHUF1,800,000,000istobefinancedatabelow-:(=$25milliondebt/$70millionassets)or%.(=HUF1,800/HUF2,400)or75%.Alphawilloverstatethetaxshieldoninterestpaymentsifitusesthe75%figurebecausetheproposedprojectwillonlyincreaseborrowingcapacitybyHUF856,800,000(=HUF2,400,000,)./$.Long-,whatspotexchangeshouldoneforecastfiveyearsintothefutureSolution:HUF250(1+.10)5/(1+.03)5=$.:..-,calculate(a)theweighted-averagecostofcapital,and(b)thecostofequityforanequivalentall-:(a)K=(1-.40).12+(.40).08(1-.35)=.0928or%(b)Aweighted-averagecostofcapitalof%foraleveredfirmimplies:K=.0928=K(1-(.35)(.40)).%.,Inc.,,,000,$andtheexpectedinflationrateis3%%:PrincipalYearSISLPSLP/(1+tPaymentttttt(t)(a)(c)(a)x(b+i)t(b)d:..DKKDKKc)15,000,000600,0001,005,386948,47725,000,000400,000972,973865,94335,000,000200,000942,029790,94615,000,0002,605,366Thedollarvalueoftheconcessionaryloanis$2,678,574=DKK15,000,000÷.Thedollarpresentvalueoftheconcessionaryloanpaymentsis$2,605,,thepresentvalueofthebenefitoftheconcessionaryloanis$73,208=$2,678,574–2,605,-$60,-taxterminalvalueoftheprojectneedtobebeforetheAPVwouldbepositiveandepttheprojectSolution:$299,/(1+K)T=$60,=($60,000/S)(1+K)TTTud=($60,000/.7261)8=€190,431.:..,howwouldtheAPVchangeif::(smaller),however,willdecreasedf(increase)theprojectAPVbecausetheforeigncurrencyreceivedwillbuyless(more)::TheAPVwouldbelessfavorablebecausetheprojectwouldhavetocoverahigherfinancecharge,.,therewouldbenobenefitreceivedfrombelowmarketfinancing.:..MINICASEONE:DORCHESTER,.,isanold-lineconfectionerspecializinginhigh-,DorchestermanufacturescandiesthatitsellsthroughoutWesternEuropeandNorthAmerica(UnitedStatesandCanada).Withitscurrentmanufacturingfacilities,,,locatedinBoston,(ountsfor65,000poundsperyear).DorchestercurrentlyestimatesinitialdemandintheNorthAmericanmarketat390,000pounds,,obviously,-￡,Dorchesterexpectsthatitwillbeabletoinitiallypriceitsproductat$$