链男母经降贸多大量 公司理财 branch out into new areas of operations. The Antaeus licence has excited much interest within the telecommunications industry and competition for the licence is expected to be stiff.Investments analysts specialising in the telecommunications sector believe that the successful bidder will have to pay between ANS 650-720 million in order to secure the licence. The Board of Directors of Heracles telecommunications plc has decided to meet in the near future to discuss the bid further.The company has a cost of capital of 12%. Required: Prepare a report to the Board of Directors of Heracles telecommunications plc concerning the forthcoming bid.In the report,you should: (a)suggest,with reasons,a guide price for the licence that the directors should consider as a basis for further discussion.(33 marks) (b)identify and discuss any significant factors that are not included in your answer to (a) above and which should be taken into account before a final decision is made.(7 marks) (c)discuss the issues that should be taken into account when deciding upon the joint bid proposal from Antaeus Telephones Inc.(10 marks) Notes: 1.In answering part(a)all key workings and assumptions must be clearly stated. 2.Workings should be in AN$000's and should be to one decimal place. 3.Ignore taxation. (50 marks) SUGGESTED ANSWERS FOR PROJECT The Antaeus licence The case study could be answered in various ways.The points made below should, therefore,be regarded as indicative. (a)Suggested price This part should include a net present value (NPV)calculation.The price paid for the licence should not exceed the net present value of the future cash flows if the wealth of shareholders is to be kept intact. The NPV calculations set out below rest on the following key assumptions: 1.The cost of each cell site will be AN$225,000(i.e.the middle of the range stated in the case study). 2.The offices and other buildings will be sold for AN$850,000(i.e.the middle of the range stated in the case study)andwill be sold in the sixth year. 3.The market share of those in the income range AN$50,000+that is retained by Geryon plc is 40%(i.e.the most likely figure)in the final two years of the licence. 第4页共8页公司理财 branch out into new areas of operations. The Antaeus licence has excited much interest within the telecommunications industry and competition for the licence is expected to be stiff. Investments analysts specialising in the telecommunications sector believe that the successful bidder will have to pay between AN$ 650 – 720 million in order to secure the licence. The Board of Directors of Heracles telecommunications plc has decided to meet in the near future to discuss the bid further. The company has a cost of capital of 12%. Required: Prepare a report to the Board of Directors of Heracles telecommunications plc concerning the forthcoming bid. In the report, you should: (a) suggest, with reasons, a guide price for the licence that the directors should consider as a basis for further discussion. (33 marks) (b) identify and discuss any significant factors that are not included in your answer to (a) above and which should be taken into account before a final decision is made. (7 marks) (c) discuss the issues that should be taken into account when deciding upon the joint bid proposal from Antaeus Telephones Inc. (10 marks) Notes: 1. In answering part (a) all key workings and assumptions must be clearly stated. 2. Workings should be in AN$000’s and should be to one decimal place. 3. Ignore taxation. (50 marks) SUGGESTED ANSWERS FOR PROJECT The Antaeus licence The case study could be answered in various ways. The points made below should, therefore, be regarded as indicative. (a) Suggested price This part should include a net present value (NPV) calculation. The price paid for the licence should not exceed the net present value of the future cash flows if the wealth of shareholders is to be kept intact. The NPV calculations set out below rest on the following key assumptions: 1. The cost of each cell site will be AN$225,000 (i.e. the middle of the range stated in the case study). 2. The offices and other buildings will be sold for AN$850,000 (i.e. the middle of the range stated in the case study) andwill be sold in the sixth year. 3. The market share of those in the income range AN$50,000+ that is retained by Geryon plc is 40% (i.e. the most likely figure) in the final two years of the licence. 第 4 页 共 8 页