Chào các bạn!
Các bạn nhấn vào đây để tham khảo bài tập mình đã làm cho môn Corporate Finance (Tài chính Doanh nghiệp) khi học năm 4 (năm cuối) ngành Quản trị khách sạn tại Glion (điểm 95%).
Mật khẩu là ThankYou@789
Yêu cầu:
1. Forecast the project’s revenue and cost cash flows for the 5 years 2022 – 2026.
2. Calculate cost of capital and capital budgeting techniques, and explain which appraisal techniques are preferred as technically the best indication of the project’s viability.
3. Analyse the project risks, and explain how it should be evaluated once it has been purchased and trading commences.
Đề bài:
The Mapletree Restaurant Group was founded over 10 years ago by the current CEO, James Maple. The group started with one single property and today boasts 30 different sites in locations around the United Kingdom. The concept is simple – good freshly cooked food, locally sourced accompanied by an extensive selection of beverages. Good service is key, and the group has won numerous awards for service excellence and recognition for their contribution to local communities. Most sites are focused on food and beverage with limited rooms revenue from some of the properties. During the COVID pandemic, the group created a takeaway ‘Gourmet box’ for two concepts at £100 each, which was highly popular. The cash flows generated from these sales across the group has enabled the management team to look forward to a return to normal trading with a positive outlook, having been able to retain their staff during a very challenging time for the sector. Moving forward, James Maple has identified a property to purchase to create a new addition to the group. This property has 100 bedrooms as well as food and beverage service and will be the first hotel property to be added to the group portfolio.
The property will cost £6,000,000 to purchase and be funded by 50% equity and 50% debt. The current average room rate is £150.00 per night with an occupancy of 75%. The sales mix of the business is based on 65% Room sales and 35% Food and Beverage sales. The overall cost structure is predicted to be in Year 1:
| Cost of sales (all departments) | 10% |
| Payroll and related costs | 30% |
| Direct operating expenses | 18% |
| Undistributed operating expenses and fixed charges (excluding interest) | 10% |
The corporation tax rate will be 20% of profits before tax. Forecasts for the next five years are to be made assuming that from 2022 businesses will be able to trade normally post-pandemic.
At the end of the first five years of trading, the residual value is estimated to be a typical multiple of the cash earnings for a mid-market hotel.
The business directors are currently securing finance and will be raising this from both a share issue and a bond issue. The equity issue will be a sale of ordinary shares at £10.00 each available to private investors and institutional funds. There will also be an issue of bonds at £10,000 each with a redemption date of 31st December 2030 and a coupon rate of 6%. In addition to the purchase price, it has been estimated that a further £1m will be required for working capital for the start-up period and £1m for renovations.
The Directors are not sure of the weighted average cost of capital for this combination of funding. However, their accountant plans to use the Capital Asset Pricing Model to estimate the cost of equity. It is assumed that the company will have the same average risk as a hotel operating company such as Hilton. It is understood that the market risk premium for this sector is likely to be 6%, but this needs to be confirmed, and the risk-free rate of return is based on current values for Treasury bonds in the UK. An alternative approach is to consider the forecasted dividend payments, which are expected to commence at 450p per share issued with a projected dividend growth rate of 3%.
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13.09.2021
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