[求助]金融投资问题 （英语题），请高手帮忙解答。

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Electronique S.A. is a French muilti-national which manufactures electrical fittings for the construction industry. The company has decided to establish itself in the UK.market and is considering two possible alternative ways of achieving this objective.

The first project involves acquiring an existing UK firm, Sleepylec.Plc. Electroqique believe that, after acquisition, they can increase Sleeplylec's cash flows by 50% via synergies and market development.

The second project involves setting up their own UK operation from scratch. The  company estimate that by developing the UK market and gaining market share from Sleepylec, they can achieve annual average net cash flows of $ 6 Mil. p.a. after 5 years.

Information on both projects is given below. (NB. The return on medium term UK government bonds is 6%)

PROJECT 1
Data re Sleepylec Plc
Market cpaitalisation: $ 45 Mil.
Current share price: $ 6
Beta (EQUITY): 1.177
Average net Cash flows p.a. $ 8 Mil.

PROJECT 2
Data re start-up project
Year                            1   2   3   4   5
Net cash flow ($ Mil.)  -5  -4  -2  -1   3
Estimated annual Net Cash flows after year 5: $ 6 Mil. per year.

(1): What is the maximum price per share that Electronique should pay to acquire Sleepylec?
(2): Explain the decision criteria that Electronique should ust to evaluate these projects on a finacial basis. Demonstrate your answer with appropriate calculations.
(3): State any assumption you have made in the above calculations.

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关键词：金融投资 英语题 Calculations Construction Calculation 求助 英语 金融投资 高手 解答

金融投资问题 （英语题）第二题

Werkzeugmaschinen GmbH is a Germany-based manufacturer of hand-held power tools. The company is currently investigating two investment projects only one of which can be undertaken.

PROJECT 1： involves extending the company's production facility in Germany. The plant will cost Euro 25 million and is expected to create additional annual profits of Euro 3.38 million for the 7-year life of the project. The plant will be fully depreciated on a straight line basis over 7 years. It has been decided that the new facility must bear its share of existing overheads and this amount has been set Euro 200,000 p.a.

PROJECT 2: involves setting up an independent manufacturing facility in the USA. The cost will be UDS 15.75 million and the project is expected to earn annual net cash flows of USD 4.5 million throughout the 7-year life of the plant.
Whichever plan is adopted will be financed from exsting resources. Werkzeugmaschinen GmbH is financed by 70% equity and 30% debt and estimate their cost of equity finance to be 22.3% and cost of debt to be 7.97%
Assume that the current spot rate of USD 1.275/Euro is constant throughout the life of the US project.

(1): Advise Werkyeugmaschinen which project (if any) they should undertake on financial basis giving your detailed reasoning and supporting calculations.

(2): If the UK manufacturing facility could be sold at the end of year 2:
(a). What is the minimum price the firm should accept?
(b). If the expected price is USD 15 million would this alter your answer to question (1)?
(c). What selling price receivable at the end of year 2 would make you indifferent to selecitng either project?

(3)State any assumption you have made in the above calculations.


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