莲剥科经降父多大号 公司理财 mine. The company has been approached by a miners'co-operative,consisting of employees of the mine.The co-operative has offered to lease the mine for the remaining four years of its life at a lease rental of $6-0 million per year,payable at the end of each year.The co-operative has also offered to buy the existing machinery and equipment from the company for $50 million immediately if a lease agreement can be reached.It has also offered to make a contribution of $1-5 million towards the cost of building the community centre in five years'time.No other parties have declared an interest in taking over the mining operations.If the company agrees to lease the mine,and thereby discontinue operations,it will have to make redundancy payments of $3.4 million immediately. Galena Ltd has a cost of capital of 10% Ignore taxation. Required: (a)Calculate the incremental cash flows arising from a decision to continue operations for a further four years rather than to lease the mine to the miners' co-operative.(12 marks) (b)Calculate the net present value of continuing operations for a further four years rather than leasing the mine to the miners'co-operative.(3 marks) (c)State whether or not the company should continue to operate the mine.You should clearly state your reasons and any key assumptions that you have made in arriving at your decision.(5 marks) (20 marks) 2.Aysgarth company has two financing proposals are being evaluated for an investment plan. Plan A is an all common equity capital structure.Three million dollars would be raised by selling stock at $40 per common share.Plan B would involve the use of financial leverage. One million dollars would be raised by selling bonds with an effective interest rate of 14%. Under this second plan,the remaining $2 million would be raised by selling common stock at the $40 per share.This use of financial leverage is considered to be a permanent part of the firm's capitalization,so no fixed maturity date is needed for the analysis.The income tax rate is 40%. 第8页共13页公司理财 mine. The company has been approached by a miners’ co-operative, consisting of employees of the mine. The co-operative has offered to lease the mine for the remaining four years of its life at a lease rental of $6·0 million per year, payable at the end of each year. The co-operative has also offered to buy the existing machinery and equipment from the company for $5·0 million immediately if a lease agreement can be reached. It has also offered to make a contribution of $1·5 million towards the cost of building the community centre in five years’ time. No other parties have declared an interest in taking over the mining operations. If the company agrees to lease the mine, and thereby discontinue operations, it will have to make redundancy payments of $3·4 million immediately. Galena Ltd has a cost of capital of 10%. Ignore taxation. Required: (a) Calculate the incremental cash flows arising from a decision to continue operations for a further four years rather than to lease the mine to the miners’ co-operative. (12 marks) (b) Calculate the net present value of continuing operations for a further four years rather than leasing the mine to the miners’ co-operative. (3 marks) (c) State whether or not the company should continue to operate the mine. You should clearly state your reasons and any key assumptions that you have made in arriving at your decision. (5 marks) (20 marks) 2. Aysgarth company has two financing proposals are being evaluated for an investment plan. Plan A is an all common equity capital structure. Three million dollars would be raised by selling stock at $40 per common share. Plan B would involve the use of financial leverage. One million dollars would be raised by selling bonds with an effective interest rate of 14%. Under this second plan, the remaining $2 million would be raised by selling common stock at the $40 per share. This use of financial leverage is considered to be a permanent part of the firm’s capitalization, so no fixed maturity date is needed for the analysis. The income tax rate is 40%. 第 8 页 共 13 页