Answer:
Re = 15.29%
Explanation:
beta at current debt level:
11.5% = 5% + (beta x 6%)
6.5% = 6%beta
beta = 6.5% / 6 = 1.083
unlevered beta = 1.083 / {1 + [(1 - tax rate) x debt / equity]} = 1.083 / {1 + [(1 - 40%) x 25 / 75]} = 1.083 / 1.2 = 0.9025
cost of levered beta at 60% debt:
0.9025 = beta / {1 + [(1 - 40%) x 60 / 40]}
0.9025 x 1.9 = beta
beta = 1.7148
Re = 5% + (1.7148 x 6%) = 15.29%
Answer:
The correct answer is schedule (time), budget (cost) and performance (resources).
Explanation:
To develop the Schedule, the outputs of the processes will be used together with the determined planning tool:
- Plan the Schedule Management. It consists of establishing the necessary policies, procedures and documentation. In order to plan, develop, direct and control the Project Schedule.
- Define the Activities. It consists of identifying those activities necessary to carry out the Project successfully.
- Sequence the Activities. It consists of identifying and documenting what kind of dependency exists between the different activities.
- Estimate resources of the Activities. It consists in estimating what type and amount of resources we need and are available to execute each activity.
- Estimate the duration of the Activities. It consists of establishing approximately how much time is necessary to complete each activity. As well as the number of resources estimated in the previous process.
- Develop the schedule. It consists in analyzing and integrating the order of execution of activities, their duration, resource requirements and possible restrictions. All this, integrated into the planned planning tool, will generate the Project Schedule, and with it the Baseline of the Schedule.
- Check the schedule. It consists of following the status of the Project, monitoring its progress and comparing with the baseline to manage possible changes.
The work necessary to carry out the six processes of Time Management must be preceded by a planning effort by the Project team, which is part of the process Develop the Project Management Plan. From it we will obtain, among others, the Schedule Management Plan that determines a methodology, the planning tool used, the format and the criteria to develop and control the Project Schedule.
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Answer:
<u>Maximum Amount that can be loanded = $4139619</u>
Explanation:
DSCR = NOI / Debt Service
Debt Service = Principal + Interest
NOI = $ 500000
Debt Service = 500000 / 125 % = $ 400,000
The loan would be ammortized monthly over a period of 25 years.
Monthly Payment or EMI
E = P×r×(1 + r)n/ ((1 + r)n - 1)
12E = 400,000 = [P×r×(1 + r)n/ ((1 + r)n - 1)] * 12
or, P = 400000 / 0.0966272500154557 = $4139619
<u>Maximum Amount that can be loanded = $4139619</u>
Answer: Value created = Hard synergies + Soft synergies – Transaction costs
Explanation: M&A transaction equations refers to equations which are used to describe a merging and acquisition process. The value created refers to Return earned from a business beyond initi expectation. Synergies refers to increased efficiency derived from the contribution of resources. It occurs when joint valuation exceeds the sun of each individual's value.
Hard synergies refers to cost saving as a result of pooled resources.
Soft synergies is attributed to increased yield in profit due to higher revenue.
Transaction cost are expenses incurred towards the merging and acquisition process
