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Small Case study (9 pages including exibiths) with 5 questions. Necessary to do use excell as well.
1.Explain what, year xxxx, was preventing company xxxx to pay dividends to
its shareholders before repaying the debt. Why, it is important to company first pay the
debt and only then issue equity?
2. How the main financial ratios, during the last twelve months (LTM), of company xxxx compare with similar companies?
3 Assuming all funds raised in the bond issue and the capital increase are used to repay
the outstanding debt, identify the new
capital structure of company xxx and estimate its (new) weighted average cost of
4 What are the main advantages of this new capital structure comparing with the old
5 Set a range for company xxxx post-money equity value and value-per-share based
on multiples (focus on LTM ratios P/E and EV/EBIT) and compares it with the expected
new share price of company xxxx once the trading re-start.