eMi Meta

Investment 300,000,000
Recover investment 12%
Working capital 1,000,000
WC recover 40% at the end
Cost increase 10% from year 2
Tax rate 25%

Calendar Year 2023 2024 2025

Project Year - 1 2
Sales:
Units 9,000 10,500
Price 45,000 45,000
Sales revenue 405,000,000 472,500,000

Variable costs:
Per unit 22,000 24,200
Variable costs 198,000,000 254,100,000

Fixed cost:
Overhead 25,000,000 25,000,000
Promotion, R&D 4,000,000 4,000,000
Depreciation 52,800,000 52,800,000
Fixed costs 81,800,000 81,800,000

Operating profit 125,200,000 136,600,000

Tax 31,300,000 34,150,000
Net profit 93,900,000 102,450,000

Cash flows:
Operating cash flow 146,700,000 155,250,000
Investment (300,000,000)
Working capital (1,000,000)
Project cash flow (301,000,000) 146,700,000 155,250,000

CAPM DDM
WACC 12.09% 13.86%
NPV 331,452,468 302,463,429
IRR 47% 47%
 2026 2027 2028
3 4 5

11,500 13,000 14,500

47,000 49,000 51,000
540,500,000 637,000,000 739,500,000

26,620 29,282 32,210

306,130,000 380,666,000 467,047,900

20,000,000 15,000,000 15,000,000

4,000,000 4,000,000 4,000,000
52,800,000 52,800,000 52,800,000
76,800,000 71,800,000 71,800,000

157,570,000 184,534,000 200,652,100

39,392,500 46,133,500 50,163,025
118,177,500 138,400,500 150,489,075

170,977,500 191,200,500 203,289,075

36,000,000
400,000
170,977,500 191,200,500 239,689,075
Phân tích độ nhạy 1 chiều

Unit sales
NPV 7000 8000 9000
331.45

Cost of capital
NPV 9.09% 10.09% 11.09%
331.5

Phân tích độ nhạy 2 chiều:

Unit sales Cost of capital
331.45 9.09% 10.09% 11.09%
7000
8000
 9000
10000
11000
ales
10000 11000

Cost of capital
12.09% 13.09% 14.09%

Cost of capital
12.09% 13.09% 14.09%
eMi Meta
Investment 300,000,000
Recover investment 12%
Working capital 1,000,000
WC recover 40% at the end
Cost increase 10% from year 2
Tax rate 25%

Year 2024
Units 9,000
Price 45,000
Variable cost 22,000
Fixed cost:
Overhead 25,000,000
Promotion, R&D 4,000,000
Depreciation 52,800,000

Calendar Year 2023 2024

Project Year - 1
CASH-IN FLOWS
Sales revenue 405,000,000
Liquidation:
Investment
Working capital
Total cash-in flows 405,000,000

CASH-OUT FLOWS
Variable costs 198,000,000
Fixed costs 29,000,000
Investment 300,000,000
Working capital 1,000,000
Total cash-out flows 301,000,000 227,000,000

NET CASH FLOW before tax (301,000,000) 178,000,000

Corporate Tax 31,300,000
NCF after tax (301,000,000) 146,700,000

CAPM DDM
WACC 12.09% 13.86%
NPV 331,452,468 302,463,429
IRR 47% 47%
 2025 2026 2027 2028
10,500 11,500 13,000 14,500
45,000 47,000 49,000 51,000
24,200 26,620 29,282 32,210

25,000,000 20,000,000 15,000,000 15,000,000

4,000,000 4,000,000 4,000,000 4,000,000
52,800,000 52,800,000 52,800,000 52,800,000

2025 2026 2027 2028

2 3 4 5

472,500,000 540,500,000 637,000,000 739,500,000

36,000,000
400,000
472,500,000 540,500,000 637,000,000 775,900,000

254,100,000 306,130,000 380,666,000 467,047,900

29,000,000 24,000,000 19,000,000 19,000,000

283,100,000 330,130,000 399,666,000 486,047,900

189,400,000 210,370,000 237,334,000 289,852,100

34,150,000 39,392,500 46,133,500 50,163,025
155,250,000 170,977,500 191,200,500 239,689,075
PT độ nhạy 1 chiều: unit of Sales thay đổi

unit of sales 9000

NPV 331452467.8 7,000
8,000
9,000
10,000
11,000
331,452,468
300,673,276
316,062,872
331,452,468
346,842,064
362,231,659
Rice Plc.
Share: Pence Dividend per share (d) 55
Face value (F) 200 Flotation cost (f) 5% on face
Market price: EPS:
Apr-22 450 2019 52
Dec-22 620 2020 46 -12%
Jul-23 355 2021 50 9%
Dec-23 350 2022 62 24%
Now-24 348 2023 55 -11%
Average growth (g) 2.47%

Preferred stock:
Price £ 102
Dividend £ 8
Cost 7.8%

Bond:

((𝐹𝑉−𝑀𝑉))/𝑛)/
Face (FV) £ 100 YTM=(𝐶+

((𝐹𝑉+𝑀𝑉)/2)×(1−t)
Price (MV) £ 98
Coupon (c) 11%
Maturity (n) 5 C £ 11
Tax rate (t) 25% (FV-MV)/n £ 0.40
YTM 8.636% (FV+MV)/2 £ 99
(1-t) 75%

WACC
Capital structure: DDM CAPM
Equity 50% 19.14% 15.60%
Debt 40% 8.761% 8.76%
Preferred 10% 7.8% 7.84%
WACC 13.86% 12.09%
DDM=[(d(1+g))/(p-(F*f))]+g Noted:
d (1+g) 56.4 dividend
P-(F*f) 338.0 market price post flotation
d/P 16.67% dividend/price
g 2.47% growth rate
DDM 19.14% DDM (cost of equity)

Free risk (rF) 6%

Market return (rM) 12%
Tax rate 25%
Beta of Rice 1.6
Market beta 1.0 Noted:
CAPM 15.60% CAPM = rF + b (rM-rF)

Year 0 1 2 3 4
Cash flows of bond (98) 8.25 8.25 8.25 8.25
IRR (YTM) 8.761%

YTM with Excel

Settlement 11/20/2024
Maturity 11/20/2029
Coupon rate 8.25%
Bond price £ 98
Redemption £ 100
Frequency 1
YTM 8.761%
 5
108.25
Bhealthy
Labor hour 60,000
Labor cost/hour 5
Item S1 S2 S3 S4
Price 80 110 145 170
Materials 12 30 35 40
Labor ($5/hr.) 16 20 15 20
Overhead 8 10 14 16
Selling cost 4 4 4 4
Total variable cost 40 64 68 80
CM per unit 40 46 77 90
CM per hour 12.5 11.5 25.7 22.5
Ranking 3 4 1 2
Hour needed 3.20 4.00 3.00 4.00

Max labor time 25,600 7,200 14,400 12,800 60,000

Item S1 S2 S3 S4
Max labor time 25,600 7,200 14,400 12,800
Max product 8,000 1,800 4,800 3,200
Max sales 640,000 198,000 696,000 544,000
Materials 96,000 54,000 168,000 128,000
Labor cost 128,000 36,000 72,000 64,000
Overhead 64,000 18,000 67,200 51,200
Selling cost 32,000 7,200 19,200 12,800
Profits 320,000 82,800 369,600 288,000
Total profit 1,060,400
MetaToy
Labor hours 450,000
Labor rate/hour 5
Fixed cost $ 400,000
Product S1 S2 S3 S4
Max demand (units) 50,000 65,000 50,000 40,000

Item S1 S2 S3 S4
Selling price 75 50 45 90
Direct materials 12 10 12 30
Direct labours 20 15 10 15
Variable overhead 8 10 8 10
Selling overhead 5 5 5 5
Total variable cost 45 40 35 60
Contribution per unit 30 10 10 30
Hours needed per unit (hr.) 4.0 3.0 2.0 3.0
Contribution per hour 7.5 3.3 5.0 10.0
Ranking 2 4 3 1
Max labor time 200,000 30,000 100,000 120,000
Item S1 S2
Max labor time (hr.) 200,000 30,000
Hours needed per unit (hr.) 4.0 3.0
Max product (units) 50,000 10,000

Max sales 3,750,000 500,000

Materials 600,000 100,000
Labor cost (rate/hour: 5) 1,000,000 150,000
Overhead 400,000 100,000
Selling cost 250,000 50,000
Contribution 1,500,000 100,000
Total contribution 3,300,000
Fixed cost 400,000
Profit 2,900,000

Hire contract/agency staff

Safety practices, train employees to improve productivity.
 S3 S4
100,000 120,000
2.0 3.0
50,000 40,000

2,250,000 3,600,000
600,000 1,200,000
500,000 600,000
400,000 400,000
250,000 200,000
500,000 1,200,000

roductivity.
Phase3-club

Fixed cost £ 7,500

Annual fee £ 275
Member cost £ 200 73%
Contribution margin per unit £ 75 27%

BEP in units (members) 100

BEP in dollars ($) 27,500

Target profit of 2,400

Members must be attracted 132

Pricing strategy:
Reduce fee £ 245
Member cost (the same) £ 200
Fixed cost (the same) £ 7,500
i. Contribution margin per unit £ 45
ii. BEP in units (members) 167
BEP in dollars ($) 40,833

With the member cost and fix cost are constant, the feasibility of a price reduction in case of:
200 members: the annual fee can reduce maximum to £237.5 (at this point, profit equal 0)

Pricing:
Case (members) 1 200
Sales £ 237.5 47,500
Member/Variable cost £ 200 40,000
Contribution margin £ 38 7,500
Fixed cost £ 7,500 7,500
Profits 0

Note:
PESTLE analysis studies the key external factors:
Political
Economic
Sociological
Technological
Legal
Environmenttal
 Income statement
Case (members) 100 200 300
Sales 27,500 55,000 82,500
Variable cost 20,000 40,000 60,000
Contribution margin 7,500 15,000 22,500
Fixed cost 7,500 7,500 7,500
Profits - 7,500 15,000
Margin of safety - 27,500 55,000
Margin of safety rate 0% 50% 67%

Income statement Price £ 245

Case (members) 100 200 300
Sales 49,000 73,500
Margin of safety 8,167 32,667
Margin of safety rate 16.7% 44.4%

bility of a price reduction in case of:

37.5 (at this point, profit equal 0)

Pricing:
Case (members) 1 300
Sales £ 225.0 67,500
Member/Variable cost £ 200 60,000
Contribution margin £ 25 7,500
Fixed cost £ 7,500 7,500
Profits 0
Nexus-Club
Fixed cost 20,000
Annual fee 360
Member cost 200 56%
Contribution margin per unit 160 44%

BEP in units (members) 125

BEP in dollars ($) 45,000

Target profit of 5,000

Members must be attracted 156

Pricing strategy:
Reduce fee £ 300
Member cost (the same) £ 200
Fixed cost (the same) £ 20,000
Contribution margin per unit £ 100
BEP in units (members) 200
BEP in dollars ($) £ 60,000

Pricing:
Case (members) 1 200
Sales 300.0 60,000
Member/Variable cost 200 40,000
Contribution margin 100 20,000
Fixed cost 20,000 20,000
Profits -

With the member cost and fix cost are constant, the feasibility of a price reduction in case of:
# 200 members: the annual fee can reduce maximum to £300 (at this point, profit equal 0)
# 300 members: the annual fee can reduce maximum to £267 (at this point, profit equal 0)
 Income statement
Case (members) 125 200 300
Sales 45,000 72,000 108,000
Variable cost 25,000 40,000 60,000
Contribution margin 20,000 32,000 48,000
Fixed cost 20,000 20,000 20,000
Profits - 12,000 28,000
Margin of safety - 27,000 63,000
Margin of safety rate 0% 38% 58%

Price £ 300
Case (members) 100 200 300
Sales 60,000 90,000
Margin of safety - 30,000
Margin of safety rate 0.0% 33.3%

Income statement

Pricing:
Case (members) 1 300
Sales 267 80,000
Member/Variable cost 200 60,000
Contribution margin 67 20,000
Fixed cost 20,000 20,000
Profits -

ity of a price reduction in case of:

00 (at this point, profit equal 0)
67 (at this point, profit equal 0)
Face (FV) 100
Coupon (c) 11%
Maturity (n) 5
Tax rate 25%

Year 0 1 2 3 4 5
Cash flows (98.0) 8.25 8.25 8.25 8.25 108.25
IRR 8.76%
 Year Sales Operation Cost Change of Ope. Cost
2021 2,000 200
2022 2,500 215 15
2023 1,900 197 (18)
2024 2,100 205 8
2025 4,000 ?? 1.67
206.67
Variables per unit 0.03
Fixed cost 141
Forecast 260
Rate 25%
Year 0 1 ROA
Assets (1,000) 1,200 20%
Debt 400 (500)
Equity (600) 700 17%
ROE