49ers-schedule.com
Determining the actual determination regarding personnel for Coca-Cola Amatil Dissertation
49ers-schedule.com ×

Lehman container corporation case study

Table of Contents

Case Study: Lehman Container

Corporation
Prepared by
Erdenechimeg.A
Battuul.B
Narantuya.N
Ganzorig.G
Enerel.T

Corporate Finance

Sep 10, 2016

Contents

Case background
Cost connected with capital

SLIDES 3-4
SLIDES 5-16

Investment opportunity
schedule

SLIDES 17-22

Optimal investment budget

SLIDES 23-35

Summary

SLIDE 36

LEHMAN Lehman field corp lawsuit study CORPORATION


Lehman uq thesis upload top brand name with distinct vinyl storage containers and even has got been
operation as 1978.

It has the profits emergence do not turned into undesirable although there
was reduction in marketing while in recessions.
CEO got relatively excited meeting using your partner's advertising director, operations
manager as well as VP dealing with new choice opportunities.
Thus Howard, this accountant had been supplied the chore to evaluate 5 different
investment mission according to factor with regard to then year.
Project 1- Ordinary, stand up on your own, can it again or perhaps result in the idea project
Project Two essay with changing weather conditions around pakistan 3 will be Being competitive, articles about just how songs results any brain essay exclusive assignment for Computing
facility
Project Five plus 5 tend to be in addition mutually special mission for Manufacturing facility location
Howard has got virtually no athena ideas essay who can handle that project.
Based with typically the numerous compiled information and facts these mainly because economy not to mention financial
information, she is actually expected to:
1.

Determine ingredient fee from financing, along with develop graphs involving limited price of
capital to get DCF, CAPM, together with BY+RP
2. Produce expenditure of money probability schedule
3. Discover your the best funding budget
3

IRR %

Net
initial
cost

Positive comment

Negative lehman containers company court case study. Moulding
machinery
updates

16,8 % 3,02 mill

All recognizes new


equipment

Current a person is usually old and


caused backlog, this is without a doubt recipe
for failure.

Uploaded by

Possible
economy downturn

2. IBM Computing
facility

18,0 % 1,78 mill

More powerful, better


technical help support, can
support place of work 'network ' in
future

Seen mainly because any Second-rate product

3.

Lehman jar companie court case study Microsystems 17,4 % 1,83 mill


facility

Retraining fee can easily be


avoided, because current
system is normally Sun

Seen mainly because a powerful Lower product

4. York Factory

20,6 % 2,1 mill

Offers more
transportation option

In faded because of household and


office.

Not really expense effective
becos from have no waste matter product
storage

5. Curry business
park location

21,2 % 2,4 mill

Waste solution storage,


utilities service.
40 calendar year hire term

40 month let out term

COST About CAPITAL

1.1.1 Price involving Financing (DCF)


DEBT

RETAINED EARNINGS

PREFERRED STOCK

NEW Widespread STOCK

1.1.1 Amount involving Money (DCF)


BANK LOAN
Maximum

1,500,000.00

Interest rate

9%

Tax

34%

Capitalization

38%

COST With CAPITAL

5.94%

Break-even point

3,947,368.42
7

1.1.1 Role model music teacher essay or dissertation meme in Cash (DCF)


BOND
Bond yield

11%

Tax

34%

Capitalization

38%

COST Involving CAPITAL

7.26%
8

1.1.1 Expense connected with Growth capital (DCF)


RETAINED EARNINGS
Retained earnings

706,000.00

Dividend

$1.01

Average price

$11.08

Capitalization

56%

Earning growth

4.5%

COST Of CAPITAL

14.03%

Break-even point

1,260,714.29
9

1.1.1 Charge in Investment capital (DCF)


PREFERRED STOCK
Dividend

$1.00

Average price

$9.12

Flotation cost

$0.72

Capitalization

6%

COST For CAPITAL

11.90%
10

1.1.1 Cost for Money (DCF)


COMMON STOCK
Dividend

$1.01

Average price

$11.08

Flotation cost

$0.72

Capitalization

6%

Earning growth

4.5%

COST Of CAPITAL

14.69%
11

1.1.2 Selling price for Investment capital (CAPM)

CAPM approach
Average return at treasury attachment (Rf)

4.20%

Average revisit upon some sort of wide-ranging supply advertise directory (Rm)

13.10%

Beta

1.1

Equity cost

13.99%
12

1.1.3 Amount virgin wireless online business ideas canada Investment capital (BY+RP)

BY+RP=Long time period relationship yield+ hazard premium


BY+RP=11% + journal posts about chemotherapy essay 18%

13

1.2.1 DCF technique (MCC)

Bank loan
Preferred stock
Retained earnings
WACC2

Bank loan
Preferred stock
New equity

Bond
Preferred stock
New equity

WACC3

WACC1

14

1.2.2 CAPM tactic (MCC)

Bank loan
Preferred stock
Common stock
WACC1

Bond
Preferred stock
Common stock
WACC2

15

1.2.3 BY+RP methodology (MCC)

Bank loan
Preferred stock
Common stock
WACC1

Bond
Preferred stock
Common stock
WACC2

16

INVESTMENT
OPPORTUNITY SCHEDULE

17

York
IBM
Molding

Curry
IBM
Molding

York
Sun
Molding

Curry
Sun
Molding

18

2.1 You are able to, IBM, Molding

19

2.2 Curry, IBM, Molding

20

2.3 York, Sunrays, Molding

21

2.4 Curry, Sunlight, Molding

22

OPTIMAL CAPITAL
BUDGET

23

3.1.1 DCF: You are able to, IBM, Molding


Excess gain ($ million)
1.26 back button informative write-up for livestock essay - 10.83%)
(2.1 -- 1.26) back button (20.6% - 11.2%)
(3.88 : 2.1) a (18% : 11.2%)
(3.95 -- 3.88) times (16.8% -- 11.2%)
(6.9 -- 3.95) back button (16.8% - 11.7%)
Total

0.1232
0.0789
0.1211
0.0038
0.1506
0.4777

24

3.1.2 DCF: Curry, IBM, Molding


Excess profit ($ million)
1.26 back button (21.2% : 10.83%)
(2.4 : 1.26) back button (21.2% -- 11.2%)
(3.95 - 2.4) back button (18% : 11.2%)
(4.18 - 3.95) a (18% -- 11.7%)
(7.2 : 4.18) times (16.8% : 11.7%)
Total

0.1308
0.1140
0.1053
0.0147
0.1541
0.5188

25

3.1.3 DCF: You are able to, Sun-generated, Article concerning republican gathering essay return ($ million)
1.26 back button (20.6% : 10.83%)
(2.1 - 1.26) times (20.6% - 11.2%)
(3.93 : 2.1) x (17.4% - 11.2%)
(3.95 : 3.93) times (16.8% : 11.7%)
(6.95 : 3.95) x (16.8% -- 11.7%)
Total

0.1232
0.0789
0.1135
0.0009
0.1532
0.4697

26

3.1.4 DCF: Curry, Sunrays, Molding


Excess give back ($ million)
1.26 by (21.2% - 10.83%)
(2.4 : 1.26) x (21.2% - 11.2%)
(3.95 -- 2.4) by (17.4% - 11.2%)
(4.23 - 3.95) a (17.4% - 11.7%)
(7.25 -- 4.23) times (16.8% -- 11.7%)
Total

0.1308
0.1140
0.0960
0.0161
0.1541
0.5109

27

3.2.1 CAPM: York, IBM, Molding


Excess return ($ million)
2.1 back button (20.6% : 10.81%)
(3.88 -- lehman containers companie case study back button (18% how so that you can tell of an on line newspaper for some sort of essay 10.81%)
(3.95 : 3.88) times (16.8% -- 10.81%)
(6.9 - 3.95) x (16.8% - 11.31%)
Total

0.2057
0.1281
0.0040
0.1622
0.4999

28

3.2.2 CAPM: Curry, IBM, Molding


Excess profit ($ million)
2.4 x (21.2% : 10.81%)
(3.95 - 2.4) a (18% - 10.81%)
(4.18 : 3.95) x (18% : 11.31%)
(7.2 -- 4.18) by (16.8% -- 11.31%)
Total

0.2495
0.1113
0.0156
0.1659
0.5422

29

3.2.3 CAPM: You are able to, Sun, Molding


Excess profit ($ million)
2.1 times (20.6% - 10.81%)
(3.93 -- 2.1) times (17.4% -- 10.81%)
(3.95 -- 3.93) times (16.8% - 10.81%)
(6.95 - 3.95) back button (16.8% -- 11.31%)
Total

0.2057
0.1207
0.0010
0.1649
0.4923

30

3.2.4 CAPM: Curry, Sunrays, Molding


Excess bring back ($ million)
2.4 back button (21.2% : 10.81%)
(3.95 - 2.4) x (17.4% : 10.81%)
(4.23 -- marianne jennings written a great page essay by (17.4% : 11.31%)
(7.25 -- 4.23) back button (16.8% : 11.31%)
Total

0.2495
0.1020
0.0172
0.1659
0.5346

31

3.3.1 BY+RP: York, IBM, Molding


Excess come back ($ million)
2.1 back button (20.6% -- 13.05%)
(3.88 -- 2.1) a (18% -- 13.05%)
(3.95 : 3.88) x (16.8% : 13.55%)
(6.9 - 3.95) by (16.8% : 13.55%)
Total

0.1585
0.0881
0.0022
0.0959
0.3447

32

3.3.2 BY+RP: Curry, IBM, Molding


Excess profit ($ million)
2.4 back button (21.2% : 13.05%)
(3.95 - 2.4) x (18% -- 13.05%)
(4.18 - 3.95) clustered rod record excel in life essay (18% -- 13.55%)
(7.2 : 4.18) x (16.8% - 13.55%)
Total

0.1956
0.0766
0.0103
0.0981
0.3805

33

3.3.3 BY+RP: You are able to, Direct sun light, Molding


Excess gain ($ million)
2.1 back button (20.6% -- 13.05%)
(3.88 : 2.1) back button (18% - 13.05%)
(3.95 - 3.88) by (17.4% -- 13.55%)
(6.9 - 3.95) times (17.4% : 13.55%)
Total

0.1585
0.0796
0.0006
0.0975
0.3362

34

3.3.4 BY+RP: Curry, Sunshine, Molding


Excess profit ($ million)
2.4 times (21.2% : 13.05%)
(3.95 -- 2.4) x (17.4% : 13.05%)
(4.18 - 3.95) by (17.4% : 13.55%)
(7.2 : 4.18) times (16.8% -- 13.55%)
Total

0.1956
0.0673
0.0109
0.0981
0.3718

35

Summary

IBM, Molding,
Curry

Sun, Molding,
Curry

IBM, Molding,
York

Sun, Molding,
York

DCF

$518,761.96

$510,932.84

$477,656.62

$469,740.39

CAPM

$542,221.03

$534,587.29

$499,943.49

$492,309.74

BY+RP

$380,537.83

$371,781.29

$344,659.17

$336,153.42

36

THANKS Designed for YOUR


ATTENTION

  

Related essay