financial service & merger & acqusition

7/28/2019 financial service & merger & acqusition

1/26

Institute's Name

Student's Name

Batch

Roll No.

Question 1 Calculate the below using NPV, IRR, XNPV, XIRR and MIRR funtions of Proj

25 Marks

Parameters Figures

Rate of Discount 10% p.a.

Initial Cost -10000Return for 1st Year 3000

Return for 2nd Year 4200

Return for 3rd Year 6800

NPV 1188.44

Parameters Figures Date

Rate of Discount 8% -

Initial Cost -100000 1/1/2007

Irregular Returns 20000 8/1/2007




XNPV 17623.27


Initial Cost -10000 1/1/1985

Return for 1st Year 3000 1/1/1986

Return for 2nd Year 2500 1/1/1987

Return for 3rd Year 4000 1/1/1988Return for 4th Year 6000 1/1/1989

Return for 5th Year 30 1/1/1990




IRR 23%

Calculation of XNPV

IEIBS

Omkar Singh

3

20110618

Calculation of IRR

Section 1:

Calculation of NPV


2/26

Question 2 Calculate the EMI and Loan Amortisation Schedule for the below?

25 Marks

Loan Amount 6000000 Rs.

Tenure 25 Yrs

1st yr - 5 yr 10.25% p.a.6th yr - 12th yr 10.75% p.a.

13th yr - 25th yr 11.00% p.a.

Question 3 Calculate the Firm Value of SKII tools by filling up all the BLUE cells with t

25 Marks

Particulars

No of Shares O/S

Cost Of Capital

Tax Rate

Year

Ratios

Revenue Growth upto 2015 (%)

W Cap / Revenue (%)

COGS / Revenue (%)

S G & A /Revenue (%)

Working Capital

Revenue

COGS

S G & A

Depreciation

Other Deductions

Taxable Income

Tax

Section

Floating Rates

Skii Tools

Calculation of EMI

Target


3/26

PAT

After Tax and Before Non Cash

Changes In W Capital

Capital Expenditure

Free Cash Flow To Firm (FCFF)

Terminal Value

Present Value Of Cash Flows (2010-2015)

Present Value Of Terminal Value

Enterprise Value / Firm Value

Assumptions 1 After 2010 till 2015:

a. Depreciation & Other Deductions a

b. Non-Cash Expenses are same as De

c. Capital Expenditure is same as Dep

Assumptions 2 After 2015 till perpetuity:

a. Growth Rate (TGR) is assumed to b

b. Incrememtal Working Capital is ze

c. Non-Cash Expenditure and & Capit

Question 4 Calculate the END to END Financial Model of Academia in the below given

25 Marks

Particulars 2006 2007 2008Sales 100.00 120.00 60.00

Less: COGS -20.00 -24.00 -12.00

GP 80.00 100.00 40.00

Less: Operating Exp 15.00 18.00 9.00

EBITDA 65.00 85.00 25.00

Less: DA -5.00 -6.00 -3.00

EBIT 60.00 80.00 20.00

Less: Interest 10.00 12.00 6.00

EBT 50.00 70.00 10.00

Less: Tax -15.00 -21.00 -3.00

EAT / PAT 35.00 55.00 -5.00

Working Capital 10 12 6

Change in WC 2 -6

Factors Pre-2012 Post-2012

COGS 20% 15%

Operating Expenses 15% 10%

Key Numbers


4/26

DA 5% 5%

Interest 10% 10%

Tax 30% 30%

Working Capital 10% 7%

WACC 12% 12%

AGR 9.44% p.a.

EGR 9.44% p.a.

TGR 5.00% p.a.

Assumptions

CAPEX=DA Post 2012 till perpetuity


5/26

ect Evaluation?


Initial Cost -100000 1/1/2007

Irregular Returns 20000 8/1/2007Irregular Returns 35000 2/1/2008



XIRR 22.60%


Initial Cost -10000 1/1/1985

Return for 1st Year 3000 1/1/1986

Return for 2nd Year 2500 1/1/1987

Return for 3rd Year 4000 1/1/1988






Cost of Borrowing 6%

Reinvestment Rate 8%

IRR 23.15%MIRR 14.26%

NPV @ IRR 0.00

NPV @ MIRR 2459.99

Calculation of MIRR

inancial Services

rof. Anil Suvarna

inancial Services - 50 Marks

Calculation of XIRR


6/26

he help of below given assumptions?

5.84 ( Lacs Issued Capital)

12% (WACC)

50% (Effective Tax Rate) (t)

2010 2011 2012 2013 2014 2015 2016

Current Estimates Estimates Estimates Estimates Estimates TV Estimates

Cal Given Given Given Given Given Given

6% 6% 6% 6% 6% 0%

30% 24% 24% 24% 24% 24%

67.50% 65% 65% 65% 65% 65%

21.50% 20% 20% 20% 20% 20%

111.99 33.76 35.79 37.94 40.21 42.63 0.00

553.00 586.18 621.35 658.63 698.15 740.04 740.04

-373.30 -140.68 -149.12 -158.07 -167.56 -177.61 0.00

-118.90 -381.02 -403.88 -428.11 -453.80 -481.03 0.00

-21.00 -21.00 -21.00 -21.00 -21.00 -21.00 -21.00

-2.00 -2.00 -2.00 -2.00 -2.00 -2.00 -2.00

37.80 41.48 45.35 49.45 53.80 58.40 717.04

-18.90 -20.74 -22.67 -24.72 -26.90 -29.20 -358.52

2: Valuations - 50 Marks

Free Cash Flow Calculation

Durable Drills

Acquirer


7/26

18.90 20.74 22.67 24.72 26.90 29.20 358.52

43.74 45.67 47.72 49.90 52.20 381.52

0.00 0.00 0.00 0.00 0.00 0.00

-21.00 -21.00 -21.00 -21.00 -21.00 -21.00

22.74 24.67 26.72 28.90 31.20 360.52

3004.33

277.72

157.58

435.30

re assumed to be at 2010 levels till 2015.

priciation till 2015.

riciation till 2015.

e zero.

o.

l Expenditure is same as that of 2015.

template?

0 1 2 3

2009 2010 2011 2012 2013 E 2014 E 2015 E80.00 100.00 120.00 130.00 142.27 155.70 170.40

-16.00 -20.00 -24.00 -26.00 -21.34 -23.36 -25.56

60.00 80.00 100.00 110.00 120.93 134.36 149.06

12.00 15.00 18.00 19.50 14.23 15.57 17.04

45.00 65.00 85.00 95.00 106.70 120.13 134.83

-4.00 -5.00 -6.00 -6.50 -7.11 -7.79 -8.52

40.00 60.00 80.00 90.00 99.59 113.02 127.72

8.00 10.00 12.00 13.00 14.23 15.57 17.04

30.00 50.00 70.00 80.00 85.36 98.79 113.49

-9.00 -15.00 -21.00 -24.00 -42.68 -46.71 -51.12

15.00 35.00 55.00 65.00 42.68 56.11 70.81

8 10 12 13 10 11 12

2 2 2 1 -3.04096 0.940133376 1.028881967

1 2 3

2013 E 2014 E 2015 E

42.68 56.11 70.81

Computation of FCFF

EAT/PAT

END to END Financial Model of Academia


8/26

0.07 0.10 0.10

-7.11 -7.79 -8.52

-7.11 -7.79 -8.52

-3.04 0.94 1.03

FCFF 25.48 41.58 54.90

187.58

1411.35

800.84

988.42

PV OF TV

Add: Interest*(1-tax)

Add: DA

Less: CAPEX

Add/Less Change in WC

PV OF FCFF

TV

FIRM VALUE

Valuation


9/26

Duration 2 hrs

Marks 100


10/26


11/26

4 5 6

2016 E 2017 E 2018 E186.49 204.09 214.30

-27.97 -30.61 -32.14

165.15 182.75 192.95

18.65 20.41 21.43

150.92 168.52 178.73

-9.32 -10.20 -10.71

143.81 161.41 171.61

18.65 20.41 21.43

129.58 147.18 157.39

-55.95 -61.23 -64.29

86.90 104.50 114.71

13 14 15

1.126008 1.2323036 0.7143184

4 5 6

2016 E 2017 E 2018 E

86.90 104.50 114.71


12/26

0.10 0.07 0.10

-9.32 -10.20 -10.71

-9.32 -10.20 -10.71

1.13 1.23 0.71

69.47 85.39 94.09


13/26

Question 2 Month Opening Balance

1 6000000

Loan Amount 6000000 Rs. 2 5995667

Tenure 25 Yrs 3 5991297

4 5986890

1st yr - 5 yr 10.25% p.a. 5 5982445

6th yr - 12th yr 10.75% p.a. 6 5977962

13th yr - 25th yr 11.00% p.a. 7 5973440

8 5968881

9 5964282

Loan Amt 6000000 Rs. 10 5959644

Tenure 25 Years 11 5954966

Tenure 300 Months 12 5950248

Intrest 10.25% Yearly 13 5945490

Intrest 0.85% Months 14 5940692

Emi -55582.9969 Rs. 15 5935852

16 5930971

17 5926049

Loan Amt 5662239.2 Rs. 18 5921084





Emi -57484.6917 Rs. 23 5895617

24 5890393

25 5885123

Loan Amt 4820646.05 Rs. 26 5879809





Emi -58210.6199 Rs. 31 5852549

32 5846957

33 5841317

34 5835628

35 5829891

36 5824105

37 5818270

38 5812385

39 5806449

40 5800463

41 5794425

42 5788336

Calculation of EMI

Floating Rates

EMI Calculator 1

EMI Calculator 2

EMI Calculator 3


14/26

43 5782195

44 5776002

45 5769756

46 5763456

47 5757103

48 5750695

49 574423250 5737715

51 5731141

52 5724512

53 5717826

54 5711082

55 5704282

56 5697423

57 5690505

58 5683529

59 5676492

60 5669396

61 5662239

62 5655479

63 5648658

64 5641776

65 5634832

66 5627826

67 5620757

68 5613625

69 5606429

70 559916971 5591843

72 5584452

73 5576995

74 5569471

75 5561879

76 5554220

77 5546491

78 5538694

79 5530827

80 5522889

81 5514880

82 5506800

83 5498647

84 5490421

85 5482121

86 5473747

87 5465298

88 5456773

89 5448172


15/26

90 5439494

91 5430738

92 5421904

93 5412990

94 5403997

95 5394923

96 538576897 5376531

98 5367211

99 5357807

100 5348320

101 5338747

102 5329089

103 5319344

104 5309512

105 5299591

106 5289582

107 5279483

108 5269294

109 5259013

110 5248641

111 5238175

112 5227616

113 5216962

114 5206212

115 5195366

116 5184424

117 5173383118 5162243

119 5151003

120 5139663

121 5128221

122 5116677

123 5105029

124 5093277

125 5081419

126 5069456

127 5057385

128 5045206

129 5032918

130 5020520

131 5008011

132 4995389

133 4982655

134 4969807

135 4956843

136 4943763


16/26

137 4930567

138 4917252

139 4903817

140 4890263

141 4876587

142 4862788

143 4848866144 4834819

145 4820646

146 4806625

147 4792475

148 4778195

149 4763785

150 4749242

151 4734566

152 4719756

153 4704810

154 4689726

155 4674505

156 4659144

157 4643642

158 4627998

159 4612211

160 4596279

161 4580201

162 4563975

163 4547601

164 4531077165 4514401

166 4497573

167 4480590

168 4463451

169 4446156

170 4428701

171 4411087

172 4393311

173 4375373

174 4357270

175 4339001

176 4320564

177 4301959

178 4283183

179 4264235

180 4245113

181 4225816

182 4206342

183 4186690


17/26

184 4166857

185 4146842

186 4126645

187 4106262

188 4085692

189 4064933

190 4043984191 4022844

192 4001509

193 3979979

194 3958252

195 3936325

196 3914197

197 3891867

198 3869332

199 3846590

200 3823640

201 3800479

202 3777106

203 3753519

204 3729716

205 3705694

206 3681452

207 3656988

208 3632300

209 3607386

210 3582243

211 3556869212 3531263

213 3505423

214 3479345

215 3453028

216 3426471

217 3399669

218 3372622

219 3345327

220 3317782

221 3289985

222 3261932

223 3233623

224 3205053

225 3176223

226 3147127

227 3117765

228 3088134

229 3058231

230 3028055


18/26

231 2997601

232 2966869

233 2935854

234 2904556

235 2872970

236 2841095

237 2808928238 2776466

239 2743706

240 2710646

241 2677283

242 2643614

243 2609637

244 2575348

245 2540744

246 2505824

247 2470583

248 2435020

249 2399130

250 2362912

251 2326361

252 2289475

253 2252252

254 2214687

255 2176777

256 2138520

257 2099913

258 2060952259 2021633

260 1981954

261 1941911

262 1901502

263 1860721

264 1819567

265 1778036

266 1736124

267 1693828

268 1651144

269 1608069

270 1564599

271 1520731

272 1476460

273 1431784

274 1386698

275 1341198

276 1295282

277 1248945


19/26

278 1202183

279 1154992

280 1107369

281 1059309

282 1010809

283 961864

284 912471285 862624

286 812321

287 761557

288 710327

289 658628

290 606455

291 553803

292 500669

293 447048

294 392935

295 338327

296 283217

297 227603

298 171479

299 114840

300 57682


20/26

EMI Intrest Principal Clossing Balance

-55583 51250 4333 5995667

-55583 51213 4370 5991297

-55583 51176 4407 5986890

-55583 51138 4445 5982445

-55583 51100 4483 5977962

-55583 51062 4521 5973440

-55583 51023 4560 5968881

-55583 50984 4599 5964282

-55583 50945 4638 5959644

-55583 50905 4678 5954966

-55583 50865 4718 5950248

-55583 50825 4758 5945490

-55583 50784 4799 5940692

-55583 50743 4840 5935852

-55583 50702 4881 5930971

-55583 50660 4923 5926049

-55583 50618 4965 5921084

-55583 50576 5007 5916077

-55583 50533 5050 5911027

-55583 50490 5093 5905934

-55583 50447 5136 5900798

-55583 50403 5180 5895617

-55583 50358 5225 5890393

-55583 50314 5269 5885123

-55583 50269 5314 5879809

-55583 50223 5360 5874450

-55583 50178 5405 5869044

-55583 50131 5452 5863593

-55583 50085 5498 5858094

-55583 50038 5545 5852549

-55583 49991 5592 5846957

-55583 49943 5640 5841317

-55583 49895 5688 5835628

-55583 49846 5737 5829891

-55583 49797 5786 5824105

-55583 49748 5835 5818270

-55583 49698 5885 5812385

-55583 49647 5936 5806449

-55583 49597 5986 5800463

-55583 49546 6037 5794425

-55583 49494 6089 5788336

-55583 49442 6141 5782195

Loan Amortisation Schedule


21/26

-55583 49390 6193 5776002

-55583 49337 6246 5769756

-55583 49283 6300 5763456

-55583 49230 6353 5757103

-55583 49175 6408 5750695

-55583 49121 6462 5744232

-55583 49065 6518 5737715-55583 49010 6573 5731141

-55583 48953 6629 5724512

-55583 48897 6686 5717826

-55583 48840 6743 5711082

-55583 48782 6801 5704282

-55583 48724 6859 5697423

-55583 48665 6918 5690505

-55583 48606 6977 5683529

-55583 48547 7036 5676492

-55583 48487 7096 5669396

-55583 48426 7157 5662239

-57485 50724 6760 5655479

-57485 50664 6821 5648658

-57485 50603 6882 5641776

-57485 50541 6944 5634832

-57485 50479 7006 5627826

-57485 50416 7069 5620757

-57485 50353 7132 5613625

-57485 50289 7196 5606429

-57485 50224 7260 5599169

-57485 50159 7325 5591843-57485 50094 7391 5584452

-57485 50027 7457 5576995

-57485 49961 7524 5569471

-57485 49893 7592 5561879

-57485 49825 7660 5554220

-57485 49757 7728 5546491

-57485 49687 7797 5538694

-57485 49617 7867 5530827

-57485 49547 7938 5522889

-57485 49476 8009 5514880

-57485 49404 8081 5506800

-57485 49332 8153 5498647

-57485 49259 8226 5490421

-57485 49185 8300 5482121

-57485 49111 8374 5473747

-57485 49036 8449 5465298

-57485 48960 8525 5456773

-57485 48884 8601 5448172

-57485 48807 8678 5439494


22/26

-57485 48729 8756 5430738

-57485 48650 8834 5421904

-57485 48571 8913 5412990

-57485 48491 8993 5403997

-57485 48411 9074 5394923

-57485 48330 9155 5385768

-57485 48248 9237 5376531-57485 48165 9320 5367211

-57485 48081 9403 5357807

-57485 47997 9488 5348320

-57485 47912 9573 5338747

-57485 47826 9658 5329089

-57485 47740 9745 5319344

-57485 47652 9832 5309512

-57485 47564 9920 5299591

-57485 47476 10009 5289582

-57485 47386 10099 5279483

-57485 47295 10189 5269294

-57485 47204 10281 5259013

-57485 47112 10373 5248641

-57485 47019 10466 5238175

-57485 46925 10559 5227616

-57485 46831 10654 5216962

-57485 46735 10749 5206212

-57485 46639 10846 5195366

-57485 46542 10943 5184424

-57485 46444 11041 5173383

-57485 46345 11140 5162243-57485 46245 11240 5151003

-57485 46144 11340 5139663

-57485 46043 11442 5128221

-57485 45940 11544 5116677

-57485 45837 11648 5105029

-57485 45733 11752 5093277

-57485 45627 11857 5081419

-57485 45521 11964 5069456

-57485 45414 12071 5057385

-57485 45306 12179 5045206

-57485 45197 12288 5032918

-57485 45087 12398 5020520

-57485 44975 12509 5008011

-57485 44863 12621 4995389

-57485 44750 12734 4982655

-57485 44636 12848 4969807

-57485 44521 12964 4956843

-57485 44405 13080 4943763

-57485 44288 13197 4930567


23/26

-57485 44170 13315 4917252

-57485 44050 13434 4903817

-57485 43930 13555 4890263

-57485 43809 13676 4876587

-57485 43686 13799 4862788

-57485 43562 13922 4848866

-57485 43438 14047 4834819-57485 43312 14173 4820646

-58211 44189 14021 4806625

-58211 44061 14150 4792475

-58211 43931 14280 4778195

-58211 43800 14410 4763785

-58211 43668 14543 4749242

-58211 43535 14676 4734566

-58211 43400 14810 4719756

-58211 43264 14946 4704810

-58211 43127 15083 4689726

-58211 42989 15221 4674505

-58211 42850 15361 4659144

-58211 42709 15502 4643642

-58211 42567 15644 4627998

-58211 42423 15787 4612211

-58211 42279 15932 4596279

-58211 42133 16078 4580201

-58211 41985 16225 4563975

-58211 41836 16374 4547601

-58211 41686 16524 4531077

-58211 41535 16676 4514401-58211 41382 16829 4497573

-58211 41228 16983 4480590

-58211 41072 17139 4463451

-58211 40915 17296 4446156

-58211 40756 17454 4428701

-58211 40596 17614 4411087

-58211 40435 17776 4393311

-58211 40272 17939 4375373

-58211 40108 18103 4357270

-58211 39942 18269 4339001

-58211 39774 18436 4320564

-58211 39605 18605 4301959

-58211 39435 18776 4283183

-58211 39263 18948 4264235

-58211 39089 19122 4245113

-58211 38914 19297 4225816

-58211 38737 19474 4206342

-58211 38558 19652 4186690

-58211 38378 19833 4166857


24/26

-58211 38196 20014 4146842

-58211 38013 20198 4126645

-58211 37828 20383 4106262

-58211 37641 20570 4085692

-58211 37452 20758 4064933

-58211 37262 20949 4043984

-58211 37070 21141 4022844-58211 36876 21335 4001509

-58211 36681 21530 3979979

-58211 36483 21727 3958252

-58211 36284 21927 3936325

-58211 36083 22128 3914197

-58211 35880 22330 3891867

-58211 35675 22535 3869332

-58211 35469 22742 3846590

-58211 35260 22950 3823640

-58211 35050 23161 3800479

-58211 34838 23373 3777106

-58211 34623 23587 3753519

-58211 34407 23803 3729716

-58211 34189 24022 3705694

-58211 33969 24242 3681452

-58211 33747 24464 3656988

-58211 33522 24688 3632300

-58211 33296 24915 3607386

-58211 33068 25143 3582243

-58211 32837 25373 3556869

-58211 32605 25606 3531263-58211 32370 25841 3505423

-58211 32133 26078 3479345

-58211 31894 26317 3453028

-58211 31653 26558 3426471

-58211 31409 26801 3399669

-58211 31164 27047 3372622

-58211 30916 27295 3345327

-58211 30666 27545 3317782

-58211 30413 27798 3289985

-58211 30158 28052 3261932

-58211 29901 28310 3233623

-58211 29642 28569 3205053

-58211 29380 28831 3176223

-58211 29115 29095 3147127

-58211 28849 29362 3117765

-58211 28580 29631 3088134

-58211 28308 29903 3058231

-58211 28034 30177 3028055

-58211 27757 30453 2997601


25/26

-58211 27478 30733 2966869

-58211 27196 31014 2935854

-58211 26912 31299 2904556

-58211 26625 31586 2872970

-58211 26336 31875 2841095

-58211 26043 32167 2808928

-58211 25749 32462 2776466-58211 25451 32760 2743706

-58211 25151 33060 2710646

-58211 24848 33363 2677283

-58211 24542 33669 2643614

-58211 24233 33977 2609637

-58211 23922 34289 2575348

-58211 23607 34603 2540744

-58211 23290 34920 2505824

-58211 22970 35241 2470583

-58211 22647 35564 2435020

-58211 22321 35890 2399130

-58211 21992 36219 2362912

-58211 21660 36551 2326361

-58211 21325 36886 2289475

-58211 20987 37224 2252252

-58211 20646 37565 2214687

-58211 20301 37909 2176777

-58211 19954 38257 2138520

-58211 19603 38608 2099913

-58211 19249 38961 2060952

-58211 18892 39319 2021633-58211 18532 39679 1981954

-58211 18168 40043 1941911

-58211 17801 40410 1901502

-58211 17430 40780 1860721

-58211 17057 41154 1819567

-58211 16679 41531 1778036

-58211 16299 41912 1736124

-58211 15914 42296 1693828

-58211 15527 42684 1651144

-58211 15135 43075 1608069

-58211 14741 43470 1564599

-58211 14342 43868 1520731

-58211 13940 44271 1476460

-58211 13534 44676 1431784

-58211 13125 45086 1386698

-58211 12711 45499 1341198

-58211 12294 45916 1295282

-58211 11873 46337 1248945

-58211 11449 46762 1202183


26/26

-58211 11020 47191 1154992

-58211 10587 47623 1107369

-58211 10151 48060 1059309

-58211 9710 48500 1010809

-58211 9266 48945 961864

-58211 8817 49394 912471

-58211 8364 49846 862624-58211 7907 50303 812321

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