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  • B Port A Cabin, Inc

    Transféré par

    Rafay Farooq
    26 vues2 pages
    Plan A and Plan B present investment options with different costs, sales, revenues, profits, and risks. Plan A has a higher ROI of 20.6% but also a higher risk with an expected EBIT of $838,000. Plan B has a lower ROI of 29.0% but also lower risk with an expected EBIT of $944,750. The document also shows the company's capital structure under different levels of debt versus equity and the corresponding weighted average cost of capital (WACC).

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    B Port a Cabin, Inc..xlsx

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    Plan A and Plan B present investment options with different costs, sales, revenues, profits, and risks. Plan A has a higher ROI of 20.6% but also a higher risk with an expected EBIT of $838,000. Plan B has a lower ROI of 29.0% but also lower risk with an expected EBIT of $944,750. The document also shows the company's capital structure under different levels of debt versus equity and the corresponding weighted average cost of capital (WACC).

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    © All Rights Reserved
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    Signaler comme contenu inapproprié
    26 vues2 pages

    B Port A Cabin, Inc

    Transféré par

    Rafay Farooq
    Plan A and Plan B present investment options with different costs, sales, revenues, profits, and risks. Plan A has a higher ROI of 20.6% but also a higher risk with an expected EBIT of $838,000. Plan B has a lower ROI of 29.0% but also lower risk with an expected EBIT of $944,750. The document also shows the company's capital structure under different levels of debt versus equity and the corresponding weighted average cost of capital (WACC).

    Droits d'auteur :

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

    48%

    900
    Plan A

    Investment 4125000
    Variable Cost (Per Unit) 700
    Sales (Units) 13025 17025 21025
    Sales (Dollars) 11,722,500 15,322,500 18,922,500
    Variable Cost 9117500 11917500 14717500
    Fixed Cost 2567000 2567000 2567000
    EBIT 38,000 838,000 1,638,000
    Net Income 19760 435760 851760
    Breakeven 12835
    ROI (%) 0.479 10.564 20.649
    Expected EBIT 838,000
    ROI(A)=ROI(B)

    Debt Equity Kd Ke Wd (%) We (%) WACC


    0 4628000 0 10.50% 0.00 100.00 10.50
    650000 3978000 10% 11.20% 14.04 85.96 10.36
    1300000 3328000 10.25% 12.25% 28.09 71.91 10.31
    1950000 2678000 10.70% 13.75% 42.13 57.87 10.30
    2640000 1988000 11.50% 15.95% 57.04 42.96 10.26
    3305000 1323000 12.95% 18.90% 71.41 28.59 10.21
    3965000 663000 15.75% 22.50% 85.67 14.33 10.24
    4628000 0 20.15% 27.00% 100.00 0.00 10.48
    Plan B

    Investment 4628000
    Variable Cost (Per Unit) 490
    Sales (Units) 13025 17025 21025
    Sales (Dollars) 11,722,500 15,322,500 18,922,500
    Variable Cost 6382250 8342250 10302250
    Fixed Cost 6,035,500 6,035,500 6,035,500
    EBIT -695,250 944,750 2,584,750
    Net Income -361530 491270 1344070
    Breakeven 14721
    ROI (%) -7.81 10.62 29.04
    Expected EBIT 944,750

    Shares sold No of shelf insured


    Firm Value Market Value of Equity Total Issued Share in Market shares TIE Ratio
    4678762 4678762 467876 462800 5076
    4734554 4084554 408455 397800 10655 14.53
    4744735 3444735 344473 332800 11673 7.09
    4733796 2783796 278380 267800 10580 4.53
    4730270 2090270 209027 198800 10227 3.11
    4726753 1421753 142175 132300 9875 2.21
    4705162 740162 74016 66300 7716 1.51
    4651512 23512 2351 0 2351 1.01

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