BUACC5936 Group Assignment.pdf - Adobe Acrobat Reader DC X File Edit View Sign Window Help Home Tools BUACC5936 Group... x A Sign In 1 4 217 100% do Share Sakura PLC is a leading investment company in Australia and you the below details relating Search 'Edit Image' to the capital structure of the company. Export PDF Information concerning raising new capital Bonds $1,000 Face value Adobe Export PDF 13% Coupon Rate (Annual Payments) 20 Term (Years) Convert PDF Files to Word or Excel Online $25 Discount offered (required) to sell new bonds $10 Flotation Cost per bond Select PDF File Preference Shares 11% Required rate to sell new preference shares BUACC593...nment.pdf X $100 Face Value $3 Flotation cost per share Convert to Ordinary Shares $83.33 Current Market Price Microsoft Word (*.docx) $4.00 Discount on share price to sell new shares $5.40 Flotation Cost per bond Document Language: $5.00 2019 - Proposed Dividend English (U.S.) Change Dividend History $4.63 2019 $4.29 2018 $3.97 2017 Convert $3.68 2016 $3.40 2015 Edit PDF Current Capital Structure Create PDF Extract from Balance Sheet $1,000,000 Long-Term Debt Comment $800,000 Preference Shares $2,000,000 Ordinary Shares Combine Files Current Market Values $2,000,000 Long-Term Debt $750,000 Preference Shares Organize Pages $4,000,000 Ordinary Shares 33% Tax Rate Risk Free Rate 5% Create, edit and sign PDF forms & agreements Start Free Trial Type here to search O X ^ - 6 ( )ENG 7:05 PM 23/09/2020BUACC5936 Group Assignment.pdf - Adobe Acrobat Reader DC X File Edit View Sign Window Help Home Tools BUACC5936 Group... x A Sign In 3 17 100% do Share a) Calculate the cost associated with each new source of finance. The firm has no Search 'Edit Image' retained earnings available. b) Calculate the WACC given the existing weights Export PDF The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm's cost of capital in the medium term and believes they should be as follows Adobe Export PDF Convert PDF Files to Word Long-term debt 40% or Excel Online Preference Shares 15% Ordinary Shares 45% Select PDF File BUACC593..nment.pdf X c) What impact do these new weights have on the WACC? Convert to The firm is considering the following investment opportunity. (2020-2027) Data is as follows Microsoft Word (*.docx) Initial Outlay $1,600,000 Document Language: English (U.S.) Change Upgrade $700,000 End of Year 4 Upgrade - 350,000 Increased sales units per annum - (Year 5-8) Working Capital $45,000 Increase required Estimated Life 8 Years Convert Salvage Value $60,000 Depreciation Rate 0.125 For tax purposes The machine is fully depreciated by the end of its useful life Other Cash Edit PDF Expenses $60,000.00 Per annum (Years 1-4) Other Cash Create PDF Expenses $76,000.00 Per annum (Years 5-8) Production Costs $0.15 Per Unit Comment Sales price $0.75 Per Unit (Years 1-4) Sales price $1.02 Per Unit (Years 5-8) Combine Files Organize Pages Prior sales estimates Year Sales 2010 520000 Create, edit and sign PDF 2011 530000 forms & agreements 2012 540000 2013 560000 Start Free Trial 2014 565000 2015 500000 Type here to search O X ^ - 6 ( )ENG 7:05 PM 23/09/2020BUACC5936 Group Assignment.pdf - Adobe Acrobat Reader DC X File Edit View Sign Window Help Home Tools BUACC5936 Group... x A Sign In 3 17 JIM + 100% . 9 5 20 do Share Prior sales estimates Search 'Edit Image' Year Sales 2010 520000 2011 530000 Export PDF 2012 540000 2013 560000 Adobe Export PDF 2014 565000 Convert PDF Files to Word or Excel Online 2015 590000 2016 600000 Select PDF File 2017 610000 BUACC593..nment.pdf X 2018 615559 2019 659000 Convert to 2020 680000 Microsoft Word (*.docx) Document Language: English (U.S.) Change Convert A Edit PDF Create PDF d) Calculate the Net Present Value, Internal Rate of Return and Payback Period Comment The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent Combine Files Stock Year Market Share Organize Pages Index Price 2010 2000 $15.00 Create, edit and sign PDF 2011 2400 $25.00 forms & agreements 2012 2900 $33.00 2013 3500 $40.00 Start Free Trial 2014 4200 $45.00 Type here to search O E X ^ - 6 ( 1) ENG 7:06 PM 23/09/2020BUACC5936 Group Assignment.pdf - Adobe Acrobat Reader DC X File Edit View Sign Window Help Home Tools BUACC5936 Group... x A Sign In 1 4 4/7 JIM + 100% + 5 20 do Share Search 'Edit Image' Export PDF Adobe Export PDF d) Calculate the Net Present Value, Internal Rate of Return and Payback Period Convert PDF Files to Word or Excel Online The financial controller is considering the use of the Capital Asset Pricing Model as a Select PDF File surrogate discount factor. The risk-free rate is 5 per cent. BUACC593..nment.pdf X Stock Year Market Share Convert to Index Price Microsoft Word (*.docx) 2010 2000 $15.00 Document Language: 2011 2400 $25.00 English (U.S.) Change 2012 2900 $33.00 2013 3500 $40.00 2014 420 $45.00 Convert 2015 5000 $55.00 2016 5900 $62.00 2017 5000 $68.00 2018 6100 $74.00 Edit PDF 2019 6200 $80.00 2020 6300 $83.33 Create PDF e) Calculate the CAPM Comment f) Explain why this figure may differ from that calculated above (i.e. Cost of equity - Ordinary Shares) Combine Files Organize Pages Create, edit and sign PDF forms & agreements Start Free Trial Type here to search O E X ^ - 6 ( ) ENG 7:08 PM 23/09/2020