September – December 2023 Case-Simmons Japan Limited- 2 questions, due in 4 hours. See the attached

Business & Finance

MUST BE COMPLETED WITHIN 4-5 HOURS!international corporate finance__________________________________________As mentioned in class, the ANPV method is best suited for valuation of this sortof situation (leveraged buyout – LBO) where capital structure changes over time.The buyer initially borrows a lot and plans to pay back later, as shown in Exhibit1. Is SJL worth the $29 million asking price? What value would you assign tothe company? Assume U.S. equity premium is 6-8%. Pay attention to whatdiscount rates to use for cash flows and different tax shields.2. Does PruAsia’s target dollar returns (that is, IRR) of 20-25% appearachievable for this deal under the proposed terms? What must be done overthe next 5 to 10 years to realize these returns? Is it realistic? (Hint: Inanswering this question, consider PruAsia’s exit strategy. PruAsia is investingin both subordinated debt and equity of SJL. The sub-debt offers only 9.5%,which is not enough to attain 20-25% return So PruAsia would have to sellequity to someone in 5 to 10 years at a high enough price to achieve IRR of20-25%. The question is: how much do they have to sell the equity for?)20:28=====================================================please check the attachmentsKindly MESSAHE ME THE MINIMUM TIME YOU CAN TAKE

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