I FINlf'IO/ m12.1,,WLM ro J:.NOkl (D Lease I P.,crrow clnd bllU :
• \f Ana nee #- compa ny '& cost of- dobb, need to hJ0'1:
CAPM ! ou.k c;UY10\'t\!scit\OV\ ttU>\~ cl.PO N {l( of- ~OITOl"llY\9
Re" f(F- + 13 am-ri:)
1...---v-----,,.
, al temativ&> :
·. ...,~
_ .... .. J .'• _... J \o: / r,~f c!"; •
0
·:' - .. , :r
.0.:,,
(Yldrt.f?\:: nst: Y,YPm I LLIYI
f-- 1r'cr( l'
'{( ,,... 0~ PMT- lnt:ete&t::: Prin:ifal C.8
o (cost:)
I<.~ rate Of vPttun:
r> ,. I + M_ _ I M = ro~V1al rate Of: rel:Jlrfl (M1r),/mlu)ll'l I ( )
,.__ . ,etut Yl_ rfq_Ulr\'d 011 pYDJ~ 2 ( )
I +- A ,I_ e iV\flclt1vYI rc:tt-e 3 ( )
Finn vttlUP u.s-ing FCF : f> r-'li : \ 1'1 " kleFore t~ •F-\na.nce co.st
F-'1 = 0
f£s FC'F ( \ ~) N== i
w"cc Wf\CC-g '()y" cos t.
.. PMr ~,..,._
Divid()nd grol\Jth modpJ : @ NPC of p0rrowing a lternative :
Po (t ha.re priq;i) .. .Q!__ "/QaY O I 2 3
J2_p - g LOat'I Pt•-\T$ l ) ( ) ( )
1ax shield
D\V. groNth rate-= D2.0 .9 =- Dw.~ x (I t g)ll- )( XX XXX XXX X'){){
N PC @ after -tax company~ co.rt: oF- dPklf:
Ana:1-ysi~Q the cnang'1 in cm::Ut ~llcy on
pl'OH\:a.blUty: @NAL tab le:
LlP =- bu- - b l - ~'B- bD 'jQax" 0 \ 2 3
t..Qa(t-y,Ml t)(.)( X ) ( ) ( )
DP= e:, net inrom Q T~lC shield Y..'l<X XX)(
l\\tlC Of ~A ")(XX
6 G = D gros& prmt (_ ) ( ') ( ) - corr
<jPclTS X 2f.-J ,
l) 1 = b. CO&t;: CE carrying m:olvdbl.eS
~pY'Qciaticn
1tes\dual vcllue ( )
b " D icx,d-d ebt: 10or ~
b D = D ~t cu;cct.LIUS
~f!f\l: w avoid'1<1 XXX
Of
~xx X'X X XX)( - rnaint . "72 ·1.
/ju = lJ ta,l.eS" X G-f>m
Mai~Ylan«> avoided
NPt M~S X
-X X X
NAL ,< ,~ positi 11p, 11?a'"
/} \ " ,'6AtW .X Salf>So) + rA~Di 'il>SillPS X(l-6-P111)l
l 36~ [ 36~ J Deoomuvung N PV cf- ptqject _From t-JCF:
difrerence between y~
fj B "' '{~ 0 \ 2 3 \ f>!r c~YQfUI vJ\th
Sal.~ XY..'X • • i11flat1on(M:1\ /oo'"
,6 D = dlfferenCP between \Jea>'l \JC (XXX) • -«>al >'a.H' of
FC CXXX) v(>tUYYl
AFN approach~ dpte1m~~~~~ ~ ~ ~u"ired
1 De,,~on- (XXXl
t:S\T XXX
AFN "A e~;So)- L (-S~:So)-Nflm ,c S, x (1 -cl) Tax~
NOt>Ai
(XX~
XXX
+De,>~ E.
A· am,t, at- S'o OCi=" XX)(
L \ 1a.bili tiP, at S'o CO&t ('XXX)
\:'1 • expPctro bell¼; 1'in NONC ( ')(X)()
So • cu~ n.t oai-a tpcou_,. Of NOWC XX)(
NPm • net yn-0F-°1t margin Tteci dua\ val..lJE,
-
')()(.)(
c1-cn ~te n..ticn r-ar,o TcJJl fia'tillltlj oYl .sa.lP (.X)O()
d · DPS"/£PS NCf x x X X
Cash convprslOn cycle (CCC)
CCC= DID -1 DPO ,1- DSO
D10 • day , lY\.lleruory ou.wanctlng
oro, d~s pi:llJo,blPf ou.Lnandmg (-v e)
oso O diJ.JJs JcL/r.s QU.Ut:iJ..17ciJ ng
• \f Ana nee #- compa ny '& cost of- dobb, need to hJ0'1:
CAPM ! ou.k c;UY10\'t\!scit\OV\ ttU>\~ cl.PO N {l( of- ~OITOl"llY\9
Re" f(F- + 13 am-ri:)
1...---v-----,,.
, al temativ&> :
·. ...,~
_ .... .. J .'• _... J \o: / r,~f c!"; •
0
·:' - .. , :r
.0.:,,
(Yldrt.f?\:: nst: Y,YPm I LLIYI
f-- 1r'cr( l'
'{( ,,... 0~ PMT- lnt:ete&t::: Prin:ifal C.8
o (cost:)
I<.~ rate Of vPttun:
r> ,. I + M_ _ I M = ro~V1al rate Of: rel:Jlrfl (M1r),/mlu)ll'l I ( )
,.__ . ,etut Yl_ rfq_Ulr\'d 011 pYDJ~ 2 ( )
I +- A ,I_ e iV\flclt1vYI rc:tt-e 3 ( )
Finn vttlUP u.s-ing FCF : f> r-'li : \ 1'1 " kleFore t~ •F-\na.nce co.st
F-'1 = 0
f£s FC'F ( \ ~) N== i
w"cc Wf\CC-g '()y" cos t.
.. PMr ~,..,._
Divid()nd grol\Jth modpJ : @ NPC of p0rrowing a lternative :
Po (t ha.re priq;i) .. .Q!__ "/QaY O I 2 3
J2_p - g LOat'I Pt•-\T$ l ) ( ) ( )
1ax shield
D\V. groNth rate-= D2.0 .9 =- Dw.~ x (I t g)ll- )( XX XXX XXX X'){){
N PC @ after -tax company~ co.rt: oF- dPklf:
Ana:1-ysi~Q the cnang'1 in cm::Ut ~llcy on
pl'OH\:a.blUty: @NAL tab le:
LlP =- bu- - b l - ~'B- bD 'jQax" 0 \ 2 3
t..Qa(t-y,Ml t)(.)( X ) ( ) ( )
DP= e:, net inrom Q T~lC shield Y..'l<X XX)(
l\\tlC Of ~A ")(XX
6 G = D gros& prmt (_ ) ( ') ( ) - corr
<jPclTS X 2f.-J ,
l) 1 = b. CO&t;: CE carrying m:olvdbl.eS
~pY'Qciaticn
1tes\dual vcllue ( )
b " D icx,d-d ebt: 10or ~
b D = D ~t cu;cct.LIUS
~f!f\l: w avoid'1<1 XXX
Of
~xx X'X X XX)( - rnaint . "72 ·1.
/ju = lJ ta,l.eS" X G-f>m
Mai~Ylan«> avoided
NPt M~S X
-X X X
NAL ,< ,~ positi 11p, 11?a'"
/} \ " ,'6AtW .X Salf>So) + rA~Di 'il>SillPS X(l-6-P111)l
l 36~ [ 36~ J Deoomuvung N PV cf- ptqject _From t-JCF:
difrerence between y~
fj B "' '{~ 0 \ 2 3 \ f>!r c~YQfUI vJ\th
Sal.~ XY..'X • • i11flat1on(M:1\ /oo'"
,6 D = dlfferenCP between \Jea>'l \JC (XXX) • -«>al >'a.H' of
FC CXXX) v(>tUYYl
AFN approach~ dpte1m~~~~~ ~ ~ ~u"ired
1 De,,~on- (XXXl
t:S\T XXX
AFN "A e~;So)- L (-S~:So)-Nflm ,c S, x (1 -cl) Tax~
NOt>Ai
(XX~
XXX
+De,>~ E.
A· am,t, at- S'o OCi=" XX)(
L \ 1a.bili tiP, at S'o CO&t ('XXX)
\:'1 • expPctro bell¼; 1'in NONC ( ')(X)()
So • cu~ n.t oai-a tpcou_,. Of NOWC XX)(
NPm • net yn-0F-°1t margin Tteci dua\ val..lJE,
-
')()(.)(
c1-cn ~te n..ticn r-ar,o TcJJl fia'tillltlj oYl .sa.lP (.X)O()
d · DPS"/£PS NCf x x X X
Cash convprslOn cycle (CCC)
CCC= DID -1 DPO ,1- DSO
D10 • day , lY\.lleruory ou.wanctlng
oro, d~s pi:llJo,blPf ou.Lnandmg (-v e)
oso O diJ.JJs JcL/r.s QU.Ut:iJ..17ciJ ng
