CFA一级百题进阶：企业理财.docx

5.CorporateFinanceQ-l.JurgenKnudsenhasbeenhiredtoprovideindustryexpertisetoHenrikSandell,CFA,ananalystforapensionplanmanagingagloballarge-capfundinternally.Sandellisconcernedaboutoneofthefund,slargerholdings,autopartsmanufacturerKruspaABKruspacurrentlyoperatesin80countries,withthepreviousVearSglobalrevenuesat5.6billion.Recently,Kruspa,sCFOannouncedplansforexpansionintoChina.Sandellworriesthatthisexpansionwillchangethecompany'sriskprofileandwondersifheshouldrecommendasaleoftheposition.Forthenewproject,DE=8020Additionalinformation:Equityriskpremium,Sweden4.82%Risk-freerateOfinterest,Sweden4.25%Industrydebt-to-equityratio03MarketvalueofKrista,sdebt900millionMarketvalueofKriJSPa'sequity2.4billionKruspa,sequitybeta1.3KrUSPa'sbefore-taxcostofdebt9.25%ChinacreditA2countryriskpremium1.88%Corporatetaxrate37.5%SandellwouldliketousetheassetbetaofKruspaasabaseinhiscalculations.TheChinaproject'sweightedaveragecostofcapital(WACC)calculatedusingtheequitybetawithoutandwiththecountryriskpremiumis,respectively:A.9%and10%.B.10%and9.03%.C.9.03%and10.42%.Solution:C.Asset=Un-Ievered=1.3(1+(1-0.375)(900/2400)=1.053forpriortoChinaproject.Project=1.0531+(10.375)(80/20)=1.0533.5=3.686forChinaproject.Costofequitywithoutthecountryriskpremium:re=0.0425+3.686(0.0482)=22.02%Costofequitywiththecountryriskpremium:re=0.0425+3.686(0.0482+0.0188)=28.95%Weightedaveragecostofcapitalwithoutthecountryriskpremium:WACC=0.80(0.0925)(10.375)+0.20(0.2202)=0.04625+0.04404=9.03%Weightedaveragecostofcapitalwiththecountryriskpremium:WACC=0.80(0.0925)(10.375)+0.20(0.2895)=0.04625+0.0579=10.42%