Question: Case 1 : Ocean Carriers Questions: Dcean Carriers uses a 9 % discount rate. What factors drive average daily hire rates? How would you characterize

Case 1: Ocean Carriers
Questions:
Dcean Carriers uses a 9% discount rate.
What factors drive average daily hire rates?
How would you characterize the long-term prospects of the capesize dry bulk industry?
Should Ms. Linn purchase the $39 M capesize? Make 2 different assumptions. First, assume that Ocean Carriers is a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit make on cargo uplifted from Hong Kong.
What do you think of the company's policy of not operating ships over 15 years old?
Case 1: Ocean Carriers Questions: Dcean Carriers uses a 9% discount

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