Estimate capex for expansion

Assignment Help Corporate Finance
Reference no: EM133123058

Please Can someone Help me to calculate this Q ?

We choose the After You Company

https://www.set.or.th/set/companyhighlight.do?symbol=AU&ssoPageId=5&language=en&country=US

All information is available on the SET website

  1. Assume in 2020, the company will increase its production capacity by 50%.   Capital Expenditure (CAPEX) or investment for this expansion is estimated at 30% of Gross Fixed Assets at the end of December 2020. (Please note that the full financial statement for 2021 is not available for the time being; therefore, let using 2020 financial statement)
    1. Estimate CAPEX for this expansion
    2. How to finance this expansion if Financing Structure with Maximum D/E ratio=2:1
      1. Internal Cash flow (cash flow from operation), or
      2. Long-term Bank Debt, or Debenture Issuance, or
      3. Increase Capital

Reference no: EM133123058

Questions Cloud

Price of the investment : An investment promises a return of $400 per year for 10 years, with the first payment occurring a year from now. If the required return is 10% a year, what shou
What is the effective annual return friendlys : Friendly's Quick Loans, Inc., offers you $6.00 today but you must repay $8.15 when you get your paycheck in one week (or else).
Profitability and operating performance ratios : Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support
What are the financial institutions : Suppose a financial manager for Alba plans to borrow BD50 million over the next year.
Estimate capex for expansion : Assume in 2020, the company will increase its production capacity by 50%. Capital Expenditure (CAPEX) or investment for this expansion is estimated at 30% of
What should the price of the bond be today : A 08.30% annual coupon, 5-year bond has a yield to maturity of 03.50%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year
What should the price of the bond be today : A 08.30% annual coupon, 5-year bond has a yield to maturity of 03.50%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year
Discuss your project cost benefit analysis : How would BGNP go about developing its information systems - Show a work breakdown structure which follows your choice of approach/ methodology
What concerns would the auditor consider during the audit : The CEO and other senior management have large bonuses linked to both share prices and company profitability. What concerns would the auditor consider

Reviews

Write a Review

Corporate Finance Questions & Answers

  Project free cash flows

You should use the company's WACC of 10% to discount the project's free cash flows. True or False? Why?

  Analyze the trends that you observed with each company

Analyze the trends that you observed with each company. To what could you attribute the increases or decreases in each company's trend(s)?

  Explain rationale for the discount rate you used to find pv

Explain the rationale for the discount rate you used to find the PV. What are the five primary types of leases, and what are their characteristics?

  Question sam short cfa has recently joined the investment

question sam short cfa has recently joined the investment management firm of green spence and smith gss. for several

  Calculate beta for new portfolio

Suppose you hold a diversified portfolio consisting of a dollar 10,000 investment in each of 15 different common stocks. The portfolio beta is = 0.9. Calculate beta for new portfolio.

  What are the sources of roe for this company

Calculate the DuPont ratio for the most recent year - calculate profit margin, total asset turnover and equity multiplier and return on equity. Show all of your work

  Summarize the management discussion and analysis

ACC-6351 Financial Statement Reporting and Analysis Assignment - Financial Statement Analysis Project. Summarize the management discussion and analysis

  Value for the hospitals investors

If interest rates rise over the next year, which bond will lose the most value and explain why the higher rated bond, Salt Lake City Revenue Bond, has a negative yield to maturity (YTM) - Discuss whether this project would add value for the hospital'..

  Review the statement of cash flows in more detail

The main purpose of module is to review statement of cash flows in more detail. Comment on differences between Apple's and Samsung's statement of cash flows.

  Identify the problem statement in the essay

What is the purpose of the essay? Is it stated clearly and identify the problem statement in the essay. Does the introduction and conclusion focus clearly on the problem statement?

  Case studyswallowit is a small australian pharmaceutical

case studyswallowit is a small australian pharmaceutical company. it is not fully integrated with the dividend

  Decision about mergers and acquisition

How the knowledge of corporate finance helps a multinational company to take decision about mergers and acquisition

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd