; UNIT— Ty
’ on steele
eunces of . SThance
[ons few Soutces* ‘
" u a” . i 7
cqutty Shoe? fopitel (7 foveal de selena vel)
bY ot Z
« fFepusence tha Copilal * Carving g credit ft po ‘pdercat)
SDebardeanes | Cg Th lomnn dx tector with an age
. Kesmnves £ Guuplures => Bond ( ard ou Given the
qovt
yp hoars [lore toard)
eS y epreciation [unde
cher! team Bounces 2
> Caeditens
— > Bank ode t ‘ ro
_> Bills pagable. Creme
P Ta ie —
aie Be 1
ote te a ae :
oa Hyg) Bebb Gpit
aa +} > Debenbures
Tal fi em se Se
| Gplal Shaw Capital mn er, Lan ie
i | ae - pry oy +4 ‘ ‘
ip ace ats de
» Naqereace Aho hal cless ' , ie
Equities , opted She aches Thaeni 2
pine eappetoac’ 4h
ay» NT ene _ Net Tne oo
“=> NOT ere plet eppacking nce Opie, oY
Capital Aavelise ‘ thot pot a -Pindnckaal ot
, Shuéhure uahich ae boi am Souncets! | xp
Py bs a mbit Xo tang ten sourced 4 pe o
fuck as aye moserver onc fo pla, :
* dlebertutet and pocleent hose. capitis a
deciat Sp _ Aros dal
Tha Hinancin
pers a as i Cope. atte cot on
optimum sie retire Optinutten Copikel |
Souctur 3 thedk ‘or stoucbuns of that)
, devel a eit eee Whee |
| mniaket Vebie pe Shows Fe martina And |
ue cost oy ‘Capital 3. mibeen ee |
t
|, Asswnplions 2 i
eae Uses oni o A ae
ie Riklon dest avd 5 ee . Para
a They axe np ae Han a
iy or he divided ut vutlio LI tooy |
| ae business suk Stemotins Centar | |
valOcl > gmbh 5 i piles We en a pen och Cet True Cpproasht “ee
kia approach frou been cheveloped be Dusrel
as ts Be tevedoed The aay. s toee a Thin
jet (opt to all adaucture detain ds ove leant \
fs ihe Valuetion (eau fn: 2 “Tr olka words,
ay ; change ™ dcbk Pea fry copaal Sixae
iil lend ee - ee Dae change. “Tr, Gore
pital | op OR Lie, aA total vate at
ef ee
ncont cppronchs wh loess! gr the followtag
wre Fionas l
fe oud rue be yKeé5
ot debt dla lew than Fhe cork eb equity "
i Jes at cledl in coyited Bhiaebaa does rat Chonge |i
ii alebl F :
ik pe Nt _ inveslaiss - (
rains Corde
debt and cast a eagsty Nan
Bone ited, te
| NT ae feo ds i
|
} obowe tee cupimetens: shies ob chet Gfeapesk
Susee 9 Log teen We nnce.) fl In
| ea goat Bee (ks ape Cost “pitts
oe Constant oes the Ned ube 4 debk tte - ‘
laprtet Gluctue Tt ull ngnhy Bc 2
if for ot
oY? Gok ¢
a canines
GE rasihonlder* Pa yey
fi flan and ene { ne
Fa Tey iaueere hy rbaeth 7 :
Fy a RT Appice h
base ]
I NT tke
oy
nt
| jis
[ ——Ke
ake
he
eS
a e ei feverey 2 ( =)
| Net Opualing fnveme (NOT) appioash
} Tha fs onothes apptoack, wheh hos been
i Suggested by dutand, yh a just Oppo ttle Le the | ‘
rad Theteiy Maskol Ue
pid’ thete ae q “fhe fe
.
nek encom ondh. Ace “Lo “this, approach, te
Capital Stucluse dectfions a siism ou favelend,
: Ty das thek an, charae ta cet iar
cagtal Struchue ( leverage) toil} ast fee
‘ Chorge Sa the Vel. “| tle copital fke)+
le financial lennag ¢-
-¥ rch arranging |
temaind! uncharded
Vises th, fotal Jealiias gy the
and ino ‘
a
4 vale a eqeaity i fas? due
podtarre Jf
ves br ocegh elt and
oO fee oe eee Walue
4 dé KL junds f incagases The
ae 4) ity Leelee bey Ky ines eases §
athe det agertena % ce at exactly, by an
ncdecte 1h fest of eet
5+ OL debt fk) te Canstoved -
Thane. an vo Conta tones
git. toto! value o the fern ace to Nor i
£) 2 follows (v'>Ea7 is,
oe t the oven Hors Say fal the mathe
b
I
a equity ks reli op lE Here Pe AO Optimum I
he
the tatad va Pace 4 F.
equily Share ang Ga
arab &
¥
: m unvaff jcbed with the Chara,
} fevehoye (change G. deb- prepettion’,
WR ke
Pte
fo -francte
EPs -EeiT Analisis Ep Casnior, po beet aly
can enc lo el apa
“ier ct g lew veLoge e 4 cl ae
& altrnabive reetheds ¢ prere g “
axysumption» ti fEIT Clhosrin befete ee: sed |
A denn hostthe Chetce te yaise fords te I
Beant, the touestinent preporels per. difgeunt
jp ewe Fn lgpesent eo i mttance :
Hts Grediye hice’ gully
a Baty equily scl SC :
. Posty epiity paily deherbuces aire partly \
oe Mis (ie
‘ choice fee (oatonben 4a Aba
Le. Se
| a Caplel Sruchure 300,000 |
pp beso
Fer t
£ JDebenbue
Jade sts
Yysood —— 5
foe a ] a
ad nage ora me | bo.
Ps ga5oo 12909 op Bs le |
Pe | Figecee I isvco 7 cg) Seam
es ="
eps de hie Pat Gn The fut peas fal tes) |—
eco suggested dp Convider plan - aE 2
——_—_
i=
Problero os zap : 3
A Compan “warts to-mcice @ 00 ep “Debertng z
ufll Gosk- (87. 7 Preference Shases 1F% | and
i Salty * Shores on be ‘Beld pet 2A" each. Ta
wale Fs sop, the deer 4s Considestng 2
‘ frrandiol plans: |
r.
{— tooy Equi
d= gor Equity 107 prtefererse Chase, Be, de
enor Equily, a0 J. i P Boj. Debenhatar.
eat CBI. Eps orabysi« on
a san
— -are i france plan 4, ge fos
epiT op * lopoo
ee " tl, 5 Pla 7
1 Y Particle , =
equily Lovee ;
erence abit
Fife bowed
6060s | Doce
De anbuses ;
= | | .
: ‘ad re \o,000 | 1--e'e.
4 Lfpbenbune é oe
ey? fares Cet
| &BT Jo,000 Godt
cae ey 2bo%
| ert Soon aoe g
| sh ; hao Soe ff
wees = fion dacea
| Shores
a Ou P|
S000 | = os
ee - :
ey Eps. S00 ie WHOM gag, | 1300 |
Yoo o \cee a | come
| : ‘ foGe
,*’ 4 Equity Gfwreb = °°
ay
(ie jan)
EPS id highest Pr Pt is
ees Suggested 5 ; 4 ’ fic
a the Capaleiliny a ffm Fo froky) gh
Leverage
Fiat y poe aasel> ew Lunds ins der ly | ce
Gnca ease the pefuend Ts ie equity & 2
holde- : | ca
ue See cule thaee “type 4 leverage |
b Opesating leverage | Pp
Bap erciel leverage. a 2
3) Combined fevera ge a
Operating leverage ;
pe te cit ths. Cost sme a3
‘te bism : i
Alt
~ Corkibaltoo 7a Veale ay
By Apt ie f, Seed
: P Cf Pes Conbatet ME
a
= peo !
“eT,
i),
ors a fhoentel oo a i
We ale in EBT |
3 Pee
Sal levesnge ae
fie
ak, 4 is fn cbs lity 4 Shoei
= hese! “be fe ps te effeels
1. ihe enartng A Shite.
Bee leverage — Emit 2
; a
tea)
red frorell s
4 chorget to EIT
Dugate. . Financed verage - tharos Io. 0 EPS,
Eosring pe shave (EPs) < epyy
. Nb a Shanes
a. i & charge in Sable _ att
a ae yoo
cS 4 change in BA a nee
a cae Charge Thv-eps =] Difteteree EAT
a base yea EAT
|, Combined leverage t=
| aot mabe Cz forint fevecge erageity |
the eink
to Change. in Esir
| Composit leyeioge = Opaating leverage sia ‘
| = Grbibution on
. : ERT
Deg af 4" Eee hvesage = ~ cage ns {
4. Tn. ales Volume! Dutton on Ppenting teveroge fF
Oe, fnvdalledd foport my 4 facts ca
"Ap bad Copacthy used FP goo unt. Selling :
bias pe andl is Belo. Vastible Cost Ey
fs & pe nil. Calera opeedig fevesage th 20 | \
fhe spollousng three Setucdinns |
i | é00 bei, |
wk hohe Pixed Cosks aus 2 UOC is
| when dived tots a2 Hi loo | ‘
P sken fined Cyits ou Place 1
Feat dens |
i Seles - weep ooo
1 Varickle cout auoo Suc
~ Contibutisn : loco Pl he ceaa
i - Fined Cost joou loo"
: BIT ed “600 ue aéadl
ope,
i aig LEY rae loco -
tee —— =abe| }60e
e “a eo Mi cree =:
arty
Fae |
Gidea Capacity = é00 wits al Gpacty = yoo
Sebi, Price aan fal
MS = Pe
Varlable Cogl= EXUe = gyop ae
Operating leverage . eae eed
: Spa = Oo x lo
Pp u
2 4000_ Cale fds | te oped
F and 4 Front Hevea
ender the egtuation fl,
ds c a franca +
plo eee also find 1 Combined! ana
aa Tabialted dapacit y (no gom eee el pub
and Soles goo etn af Selling price 315 pa
unt 5 uewinble cost Bie pet aait ,
di}
ised Cost 3 Sl rscdttion AR 2000, oe
Chuclon R Bec00
fiche Ge EAC ‘
i the Selected fin.
wee ek folleccs Po aprte
Toaticedlts | Ffem A
Veunbl Gch 4 a |
nf for |
Percent we | Seles / |
FEntexest expenses | oe
DEL a- |
|
DFL > |
eons
46 f
# DFL - BIT eit
EBT BIT.
dlabo fot Proms 46 p
ted} trae
Tos a
| fran | Fin oe
| 66 66y,
|
— BS SA”
aooD
1S gr Gicciey
= aro gooe
BE Sates 200 |
Vic = soy 5 Sales
=
oe x Good
Dot = Share “y-goD
aso = ¥
Sap jaoe . follows pat aE
ye Dtel gives
god 2 aete-| he capital structute 3 |
a i | zi
Gojeee eqtt fy Shel ex ee
; fhe Conve t
Bo ech, 7% deb
1 ard 10% pacperene
\ Compute pot, BFL, BEL |
sntuie’ amount te Basson |
ohare 4 B pee s
Pe) [nets
: Cal es woo?
Soles price 34 ont 10
Fi Meagiral poe pe tanit 5
Lobo Gxt pet uit 3
Vanioble cweth ead! i
1 f “Tax Soy
! - Fined ovethead fovea
Me ee
a ft er a
Pasties aol4 Boao
Sales : looong (woo io
Pe boeca leScoc |
‘ "Cord tihution. 4000 “Fs008 | a4
s celle @deeo U0 O20 i
ee | ee ——_ - |
| Feit mooveo 38co0ce
oO
ae ay tg st k Be 2 el 4 Copital 5
t Lo ase 7 fan Le defisedl both nian Ongort ads
iy esto poink \ View .
fiom an bigantrabion's prind: view , tak
cat ds ae at thi eb an Setter os
raise copied ts Perel iy ypulows profects.
ytte basic, motive a 00. choantrabion ty False i
“ed a Caapita) th infest ty #b Vasious p panel
(a aes) progit Fiathes, cut 4 Tak rope, He
a anbialion indereat el a. f a tit o
vownees 4 Capital. The ames patd ox indore 4
and clividlencl us Caprticdend ax cock of Copied.
Flom The invester’s porrd View Cost q Gr !
db the nate of wetoan, which Bvestors expect
fis capital five by “tem Fn The captains Th
tolcula tion o cost of Capita! ds vet eee | !
fot the a _ om oigetelles
ips sii Copital e—|
Hy Coat sai
PBs fa tow pe eAenice Share
bs sb ‘ Ghose | ont i
S Gat ‘elalnedecarlins Nobles pn trredemnble Awe
é i
eee 4 Gorpahies ls 4 paicep tual ele bb %f
¥ 1,600,000 box tale Heiden Me eae
Geet til A Jove fox ah twell as Attet {ova Ching
thot chebt a sued of Ye
th bidiscount tay
a @ faery (o7-
SVs loc,
Potent = 15% = logoae x (57
= [Scone
Bafote tay.
Ke elses on
SV abe ee
| (i on 2
i Ky = = ali~2 Ed, | o( (ona)
= O1S fos8 = OGqed
(@ precrhero Mops
SV = oon0k to y,
= loGe00 4+ loose = |I6000
i Ptfote ton
igs iSoca
ou itee, |
Ate tox
lee = fi-4) So l2xas0
i
— ere -
© 