链剥将发多大是 公司理财 Less Loan to be repaid 63.912 Proceeds available to ordinary shareholders 19.174 Less Amount due to management team(30%) 44.738 Proceeds available to Ballymena Investments Ltd Trial 1 using a discount rate of 26% ￡000 14,092 ￡44,738x0.315 15,000 Less Initial Investment (908) Net present value The IRR is below 26%as the NPV is negative.A further trial,using a lower discount rate,is required. Trial 2 using a discount rate of 24% ￡000 15,256 ￡44,738x0.341 15,000 Less Initial Investment 256 Net present value Thus,the IRR is a little over 24%and so does not meet the required rate of return for Ballymena Investments Ltd.(30 marks) (b)Before a final decision is made,Ballymena Investments Ltd will probably require a full business plan from the management team. The plan should include: the history and background of the company -the products and services provided,including information relating to any distinctive features the nature of the markets in which the company operates,including details of key customers details of the marketing and sale-the key skills and experience of those working within the company the composition and experience of the management team the financial track record of the company detailed management plans for the future,including plans for improvements detailed forecast financial results the management and ownership structure of the company the risks associated with the business activities the nature and amount of finance required Ballymena Investments Ltd will also need to be confident that the investment can be 第8页共9页公司理财 Less Loan to be repaid Proceeds available to ordinary shareholders Less Amount due to management team (30%) Proceeds available to Ballymena Investments Ltd 63,912 19,174 44,738 Trial 1 using a discount rate of 26% ￡000 ￡44,738 x 0.315 Less Initial Investment Net present value 14,092 15,000 (908) The IRR is below 26% as the NPV is negative. A further trial, using a lower discount rate, is required. Trial 2 using a discount rate of 24% ￡000 ￡44,738 x 0.341 Less Initial Investment Net present value 15,256 15,000 256 Thus, the IRR is a little over 24% and so does not meet the required rate of return for Ballymena Investments Ltd. (30 marks) (b) Before a final decision is made, Ballymena Investments Ltd will probably require a full business plan from the management team. The plan should include: – the history and background of the company – the products and services provided, including information relating to any distinctive features – the nature of the markets in which the company operates, including details of key customers – details of the marketing and sale– the key skills and experience of those working within the company – the composition and experience of the management team – the financial track record of the company – detailed management plans for the future, including plans for improvements – detailed forecast financial results – the management and ownership structure of the company – the risks associated with the business activities – the nature and amount of finance required Ballymena Investments Ltd will also need to be confident that the investment can be 第 8 页 共 9 页