CFS WRITE UP ON CASE 6 BY SUSHMA T Session 6 – Structuring Repsol’s Acquisition of YPF Suggested Questions: 1) How significant are the expected synergies and restructuring effects? Please prepare an estimate of the value of these. For Repsol and its shareholders‚ the YPF acquisition deal is seen as an ideal strategic match. The Spanish oil company gets most of its revenues from activities like refining and gasoline stations‚ and must buy much of its crude oil from others‚ while YPF owns
Premium Stock Stock market Corporate finance
assumptions provided in the Tire City case‚ prepare complete pro forma forecasts of TCI’s 1996 and 1997 income statements and year-end balance sheets. As a preliminary assumption‚ assume any new financing required will be in the form of bank debt. Assume all debt (i.e.‚ existing debt and any new bank debt) bears interest at the same rate of 10%. 3. Using your set of pro forma forecasts‚ assess future financial health of Tire City as of the end of 1997. Will Tire City be in a stronger or weaker financial
Premium Finance Weighted average cost of capital Corporate finance
AND BENEFITS OF USING PROJECT FINANCE INSTEAD OF TRADITIONAL DEBT FINANCE? Soln. PDVSA should go for project financing for the development of the Orinoco basin. PDVSA is not looking for financing of one deal‚ but at a chain of many deals which would be a public- private partnership between PDVSA and a foreign organization for development and up-scaling of the Orinoco Basin. Therefore‚ it is important that PDVSA maintains its cash and debt capabilities to address to future uncertainties. This would
Premium Debt Interest Finance
Case Study: Fraikin SA Comparison of Three Financing Options a. Background Analysis Current Situation Founded in 1994‚ Fraikin group‚ the largest French truck rental operation‚ took up 30% of the market share by 2004. The core operation business of Fraikin is to provide its clients with customized trucks and commercial vehicles‚ primarily under long-term operating lease contracts. During the period from 1999 to 2002‚ the number of the leased trucks was continuously increasing (from 59‚600 to
Premium Debt Corporate finance Finance
companies use debt financing to achieve financial goals. Some choose to use debt consolidation financing. By having a wide range of financing options available‚ a company is able to get their business up and running faster. This paper will examine three options of financing for Scott Equipment. The aggressive‚ moderate‚ and conservative financing options will be calculated and compared in order to determine the best option for Scott Equipment. Summary of Short-Term and Long-Term Financing Policy Options
Premium Finance Debt Investment
tructure CORPORATE FINANCE PROJECTPRACTICAL CONSIDERATIONS OF CAPITAL STRUCTURE OF A COMPANY IN INDIASubmitted to: Submitted by:Mr. Rajesh Jhamb Atul Pabbi 09104013Priyanka Bhola 09104043Rahul Mahajan 09104045Shreya Adya 09104052ACKNOWLEDGEMENTAn acknowledgement is not just a mere formality but a true opportunity to express my sincere gratitude towards all the people who have been of great help and have played an important role in making the training a great learning experience providing
Premium Corporate finance Finance Stock
acquiring 25 new electric power generating plants‚ Moreover‚ at a cost of roughly $500‚000 per Megawatt (MW) for a BB rated company with total assets of only $1.7 billion and a debt-to-capitalization ratio of 79%‚ financing would not be easy. To get to 15‚000 MW in five years‚ they needed to raise at least $4.5 billion from debt and equity markets assuming Calpine generated $1.5 billion of cash from operations as projected. In the near term‚ however‚ they needed to finance four merchant plants with a
Premium Finance Debt Vertical integration
Contents ABSTRACT 1 1. Macro and Industry Analysis 3 1.1 Financing Environment 3 1.1.1 International Monetary Market 3 1.1.2 International Bond Market 7 1.1.3 International Stock Market 9 1.1.4 International Private Equity Market 10 1.2 Industry Analysis 10 1.2.1 Industry Life Cycle Analysis 11 1.2.2 Five Forces Analysis 13 2. Financial Analysis and Forecasting 20 2.1 Financial Analysis 20 2.1.1 Profitability Analysis 20 2.1.2 Debt Solvency Analysis 24 2.1.3 A Close Look at Prada’s Cash
Premium Debt Cash flow Cash flow statement
reporting and energy trading had put Williams under financial stress. Over the first six months in 2002‚ Williams had cut back on capital spending‚ planned more than a billion dollars worth of asset sales‚ slashed the firm’s dividend by 95% and raised financing in a variety of forms. Williams’ priority was acknowledged to be “raising cash and access to cash”. In the summer of 2002‚ Malcolm‚ CEO of Williams‚ was considering the latest in a series of decisions facing the beleaguered firm: whether to accept
Premium Debt Loan Stock
strategy. The main focus of this paper is to choose the optimal financing. The managers Kelly and Crabtree are discussing which one of the following funding strategies that would be optimal to reach Calpine’s growth strategy. The 3 options are project financing‚ corporate financing and a hybrid of the two. Each funding strategy has its pros and cons‚ which we will use to determine the best strategy. Project Finance In general project financing seems as a bad choice. Firstly‚ there is a size-limitation
Premium Finance Debt