2016-2017 Solution
2016-2017 Solution
2016-2017 Solution
value of chand
Amar Chand
FCFF 6 135
TV 1575
VSGP 797.8089734439
CF 250000 CF 300000
amount probability amount probability
120000 0.2 200000 0.4
160000 0.3 250000 0.5
220000 0.5 300000 0.1
120000
0.2
250000
0.1
300000
Statement of expected NPV
year Cash flow Prob PVF PV of CF 1
1 250000 0.4 0.90909091 227272.727
1 250000 0.4 0.90909091 227272.727
1 250000 0.4 0.90909091 227272.727
1 300000 0.6 0.90909091 272727.273
1 300000 0.6 0.90909091 272727.273
1 300000 0.6 0.90909091 272727.273
0.3
0.4
0.5
year cash flow prob PVF PV of CF 2 total PV joint Prob
2 120000 0.2 0.82644628 99173.5537 -73553.719 0.08
2 160000 0.3 0.82644628 132231.405 -40495.8678 0.12
2 220000 0.5 0.82644628 181818.182 9090.90909 0.2
2 200000 0.4 0.82644628 165289.256 38016.5289 0.24
2 250000 0.5 0.82644628 206611.57 79338.843 0.3
2 300000 0.1 0.82644628 247933.884 120661.157 0.06
Expected NPV
-5884.2975207
-4859.5041322
1818.18181818
9123.96694215
23801.6528926
7239.66942149
31239.6694215
div paid
no of shares 300000 price 1 158.75
MP 150 div amt 3000000
div 10 ret earn 1000000
ke 12.50% inv req 5000000
net income 4000000 old shares 300000
inv 6000000 new shares 31496.063
total 331496.063
value 52625000
div not paid
168.75
0
4000000
2000000
300000
11851.8519
311851.852
52625000
year 2015 year 2016
units 50000 units
sp 250
RM 6250000 125 RM
labour 1750000 35 labour
OH 2000000 40 OH
total cost 10000000 200 total cost
profit 2500000 50 20 profit
sales 12500000 250 100 sales
Working capital
add MOS
final WC
40000
5000000 125
1288000 32.2
1472000 36.8
7760000 194 80
1940000 48.5 20
9700000 242.5 100
2493000
124650
2617650