Scribd Logo
Importer

Bienvenue sur Scribd !

  • CF Model Paper Solution - Parameswaaran R

    Transféré par

    Madan Kumar
    18 vues2 pages
    Debt is 1000 with an interest rate of 12%. Working capital outstanding in 2010 was 30. The firm has a WACC of 15% and tax rate is 25%. Debt to value ratio is 70%. The firm has excess debt beyond its sustainable limit and cannot pay interest in 2011 based on cash flow available for debt servicing. Calculating the present value of cash flows available for debt servicing results in a negative NPV, indicating the firm is in financial distress.

    Description originale:

    CF Model question and answere

    Copyright

    © © All Rights Reserved

    Formats disponibles

    XLSX, PDF, TXT ou lisez en ligne sur Scribd

    Avez-vous trouvé ce document utile ?

    Ce contenu est-il inapproprié ?

    Signaler ce document
    Debt is 1000 with an interest rate of 12%. Working capital outstanding in 2010 was 30. The firm has a WACC of 15% and tax rate is 25%. Debt to value ratio is 70%. The firm has excess debt beyond its sustainable limit and cannot pay interest in 2011 based on cash flow available for debt servicing. Calculating the present value of cash flows available for debt servicing results in a negative NPV, indicating the firm is in financial distress.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme XLSX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    18 vues2 pages

    CF Model Paper Solution - Parameswaaran R

    Transféré par

    Madan Kumar
    Debt is 1000 with an interest rate of 12%. Working capital outstanding in 2010 was 30. The firm has a WACC of 15% and tax rate is 25%. Debt to value ratio is 70%. The firm has excess debt beyond its sustainable limit and cannot pay interest in 2011 based on cash flow available for debt servicing. Calculating the present value of cash flows available for debt servicing results in a negative NPV, indicating the firm is in financial distress.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme XLSX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 2

    Debt 1000

    Interest rate 12%


    WC outstanding 2010 30 Sales
    Growth rate after 2016 5% COGS
    WACC 15% SGA
    Tax 25% PBIT
    WC as % os sales 20% Tax
    D/V 70% PAT
    Add dep

    Less CAPEX

    WC
    Less: Delta WC
    FCF

    PV(FCF)
    PV(Perpetuity)
    NPV

    Q1 Excess Debt

    Q2 Sustainable Debt

    Q3 Debt in Excess of Sustainable Limit

    Q4 Interest Component for 2011


    Cash flow available for Debt servicing
    Firm cannot pay the interest in the year 2011

    Q5 PV(CFADS)
    NPV
    Accumulated Interests
    1 2 3 4 5 6
    2010 2011 2012 2013 2014 2015 2016
    200 250 375 469 539
    110 138 206 258 296
    40 38 56 70 81
    50 74 113 141 162
    12.5 18.5 28.25 35.25 40.5
    37.5 55.5 84.75 105.75 121.5
    20 5 13 9 7
    57.5 60.5 97.75 114.75 128.5
    40 10 25 19 14
    17.5 50.5 72.75 95.75 114.5
    40 50 75 93.8 107.8
    30 10 10 25 18.8 14
    7.5 40.5 47.75 76.95 100.5 105.525
    1055.25
    6.52 30.62 31.40 44.00 49.97 456.21
    ₹ 162.50
    618.72 524.6457
    ₹ 687.15
    381.28

    433.10283

    185.62

    51.97234
    7.5 40.5 47.75 76.95 100.5

    6.6964286 32.286352 33.987507 48.903116 57.026399


    178.8998
    44.47234 11.47234 4.2223395 -24.97766 -48.52766
    60.167019
    493.26985

    Vous aimerez peut-être aussi