SAPM Ex sol

8/12/2019 SAPM Ex sol

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Q1 TOTAL share purchase price brokerage brokerage

20-01-2011 15000 450.1 15000 6751500 0.003 20254.5

6/2/2011 15000 415.14 30000 6227100 0.003 18681.3

17-01-2011 15000 403.45 45000 6051750 0.003 18155.25

14-4-2011 15000 432.15 60000 6482250 0.003 19446.75

27-05-2011 30000 421.76 90000 12652800 0.003 37958.415-06-2012 10000 445.67 100000 4456700 0.0023 10250.41

42622100 0.0173 124746.6

13951.94175

SALES

No. price Total sales brokerage brokerage

10000 446.72 10000 4467200 0.0023 10274.56

30000 444.92 40000 13347600 0.003 40042.8

60000 438.65 100000 26319000 0.003 78957

44133800 129274.4

48590500 139524.8

turnover

divident 45000

tax rate

Ordinary gain 45000 40% 27000ST capital Gain -21348.50671 15% -18146.2

LT capital Gain 1163331.288 0% 1163331

1186982.781 1172185

Q1 139524.8

Q2

Ordinary g 45000 40% 27000

ST capital -21348.50671 15% -18146.2LT capital 1163331.288 0% 1163331

Q3 turn over 48590500

expl. Cost 204041.2 0.41992%

Q4

if brokerage on purchase if


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total investment (assu 42638005.52

capital gain 1310861.059 P1

DIVIDEND 45000 X1

dividend tax 18000 P0

NET DIVIDEND 27000 X0

impact of capital gain 3.0744% capital gain

impact of dividend tax 0.0633% Taximpact of dividend tax -0.0422% net capital

impact of capital gain t 0.0075%

total net impact of cap 3.13772%

Q5 mid price sale price Quoted effective no. of shar

446.75 446.72 12 0.12 0.06 10000

444.965 444.92 1 0.09 0.09 30000

440.005 438.65 2 0.11 2.71 60000

average 0.105 1.659

implicit cost 1.554

total impact cost 165900 0.341%

total execution cost 369941.2173 0.761%

no brok


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ST STT RTC TC STAMP DUTY explicit cos TOTAL PURCHASE COS

2086.214 6751.5 6.7515 209.2965 0 29308.26 6780808

1924.174 6227.1 6.2271 193.0401 0 27031.84 6254132

1869.991 6051.75 6.05175 187.6043 0 26270.65 6078021

2003.015 6482.25 6.48225 200.9498 0 28139.45 6510389

3909.715 12652.8 12.6528 392.2368 0 54925.8 127077261055.792 4456.7 4.4567 138.1577 0 15905.52 4472606

12848.9 42622.1 42.6221 1321.285 0 181581.5 42803682

0.42603%

0.42422%

ST STT RTC TC STAMP DUTY

1058.28 4467.2 4.4672 138.4832 0 15942.99 4451257

4124.408 13347.6 13.3476 413.7756 0 57941.93 13289658

8132.571 26319 26.319 815.889 0 114250.8 26204749

13315.26 44133.8 44.1338 1368.148 0 188135.7 43945664

14371.05 48590.5 48.5905 1506.306 204041.2

explicit cos 204041.2

Ordinary g 45000 40% 27000

ST capital -21348.5 15% -18146.2LT capital 1329007 0% 1329007

no brokerage on previous purchase


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LT ST TOTAL

44133800 39666600 4467200 44133800

188135.7 172192.7 15942.99 188135.7

42622100 38165400 4456700 42622100

15905.52 0 15905.52 15905.52

1307659 1329007 -21348.5 1307659

-3202.28 0 -3202.28 -3202.281310861 1329007 -18146.2 1310861

impact cost

600

2700

162600

165900

0.3414%

erage on purchase


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effective price

452.0539

416.9421

405.2014

434.026

423.5909447.2606

2579.075

445.1257

442.9886

436.7458

1324.86


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principle 1000

PV 965.5

Question nominal yi monthly nominal yield quarterly coupan rate quarterly c

1 7.95% 0.006623 2.00% 20.00

2 CY 8.29%

IRR (Quart YTM

3 YTM -965.5 2.22% 8.86%

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.0020.00

20.00

20.00

1020.00

4 BEY 8.96%

5 EAY 9.16%

6 YTFC -965.5 IRR (Quart YTFC20.00 2.48% 9.92%

20.00

20.00

20.00

20.00

20.00

20.00

20.00


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20.00

20.00

20.00

1040.00

7 YTFC -965.5 IRR (Quart YTFPC20.00 2.29% 9.16%

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

1020.00

8 -965.5 IRR (Quart YTP

20.00 2.35% 9.38%

20.00

20.00

20.00

20.0020.00

20.00

20.00

20.00

1015.00

10 22.48414


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upan payment


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PV 13.63091 14.46495 15.35003 9.238619 53.75087

PV 106.4354

Valaue 280.9954


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7 8 9

23.55376 24.73145 25.96802

40% 50% 50%

10.00% 5.00% 5.00%

9.421505 12.36573 12.98401136.6738

9.421505 149.0395

3.651589 50.44958


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1 & 2

RATE BOND PRICE 0.25% -0.25% 0.25% -0.25%

1% $1,436.81 $1,421.56 $1,452.27 -1.06% 1.08%

2% $1,377.08 ($59.73) $1,362.66 $1,391.70 -1.05% 1.06%

3% $1,320.58 ($56.50) $1,306.94 $1,334.41 -1.03% 1.05%4% $1,267.11 ($53.47) $1,254.19 $1,280.20 -1.02% 1.03%

5% $1,216.47 ($50.64) $1,204.24 $1,228.88 -1.01% 1.02%

6% $1,168.49 ($47.98) $1,156.90 $1,180.25 -0.99% 1.01%

7% $1,123.01 ($45.49) $1,112.00 $1,134.15 -0.98% 0.99%

8% $1,079.85 ($43.15) $1,069.41 $1,090.43 -0.97% 0.98%

9% $1,038.90 ($40.96) $1,028.98 $1,048.94 -0.95% 0.97%

10% $1,000.00 ($38.90) $990.58 $1,009.54 -0.94% 0.95%

11% $963.04 ($36.96) $954.09 $972.11 -0.93% 0.94%

12% $927.90 ($35.14) $919.39 $936.52 -0.92% 0.93%

13% $894.48 ($33.42) $886.38 $902.68 -0.91% 0.92%

14% $862.68 ($31.81) $854.97 $870.48 -0.89% 0.90%

15% $832.39 ($30.28) $825.05 $839.83 -0.88% 0.89%

16% $803.54 ($28.85) $796.54 $810.62 -0.87% 0.88%

question 6

RATE BOND PRICE 0.25% -0.25% 0.25% -0.25%

1% $1,679.48 $1,662.45 $1,696.75 -1.01% 1.03%

2% $1,612.75 ($66.73) $1,596.63 $1,629.09 -1.00% 1.01%3% $1,549.56 ($63.18) $1,534.30 $1,565.04 -0.99% 1.00%

4% $1,489.70 ($59.86) $1,475.23 $1,504.37 -0.97% 0.98%

5% $1,432.95 ($56.75) $1,419.22 $1,446.85 -0.96% 0.97%

6% $1,379.11 ($53.83) $1,366.09 $1,392.31 -0.94% 0.96%

7% $1,328.02 ($51.10) $1,315.65 $1,340.54 -0.93% 0.94%

8% $1,279.49 ($48.53) $1,267.74 $1,291.39 -0.92% 0.93%

9% $1,233.38 ($46.11) $1,222.21 $1,244.69 -0.91% 0.92%

10% $1,189.54 ($43.84) $1,178.92 $1,200.29 -0.89% 0.90%

11% $1,147.84 ($41.70) $1,137.73 $1,158.07 -0.88% 0.89%

12% $1,108.14 ($39.69) $1,098.52 $1,117.88 -0.87% 0.88%

13% $1,070.34 ($37.80) $1,061.18 $1,079.62 -0.86% 0.87%14% $1,034.33 ($36.01) $1,025.59 $1,043.17 -0.84% 0.85%

15% $1,000.00 ($34.33) $991.67 $1,008.43 -0.83% 0.84%

16% $967.26 ($32.74) $959.31 $975.30 -0.82% 0.83%

question 7

New BOND PRICE % CHANGE in Bond Price




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Duration Duration effect Convexity

0.25% -0.25% 0.25% -0.25%

$4.28 $15.36 $1,421.45 $1,452.17 0.001203 0.000075 0.000075

$4.22 $14.52 $1,362.56 $1,391.60 0.001174 0.000073 0.000073

$4.16 $13.74 $1,306.84 $1,334.32 0.001146 0.000072 0.000072$4.11 $13.01 $1,254.10 $1,280.12 0.001118 0.000070 0.000070

$4.05 $12.32 $1,204.15 $1,228.79 0.001091 0.000068 0.000068

$4.00 $11.68 $1,156.82 $1,180.17 0.001065 0.000067 0.000067

$3.94 $11.07 $1,111.93 $1,134.08 0.001040 0.000065 0.000065

$3.89 $10.51 $1,069.35 $1,090.36 0.001016 0.000063 0.000063

$3.84 $9.98 $1,028.92 $1,048.87 0.000992 0.000062 0.000062

$3.79 $9.48 $990.52 $1,009.48 0.000968 0.000061 0.000061

$3.74 $9.01 $954.03 $972.05 0.000946 0.000059 0.000059

$3.69 $8.57 $919.34 $936.47 0.000924 0.000058 0.000058

$3.64 $8.15 $886.33 $902.63 0.000903 0.000056 0.000056

$3.60 $7.76 $854.92 $870.43 0.000882 0.000055 0.000055

$3.55 $7.39 $825.00 $839.78 0.000861 0.000054 0.000054

$3.50 $7.04 $796.50 $810.58 0.000842 0.000053 0.000053

Duration Duration effect Convexity

0.25% -0.25% 0.25% -0.25%

$4.08 $17.15 $1,662.33 $1,696.63 0.001128 0.000070 0.000070

$4.03 $16.23 $1,596.52 $1,628.98 0.001099 0.000069 0.000069$3.97 $15.37 $1,534.19 $1,564.94 0.001071 0.000067 0.000067

$3.91 $14.57 $1,475.13 $1,504.27 0.001044 0.000065 0.000065

$3.86 $13.82 $1,419.13 $1,446.76 0.001018 0.000064 0.000064

$3.80 $13.11 $1,366.00 $1,392.22 0.000992 0.000062 0.000062

$3.75 $12.45 $1,315.57 $1,340.46 0.000968 0.000060 0.000060

$3.70 $11.82 $1,267.67 $1,291.31 0.000944 0.000059 0.000059

$3.64 $11.24 $1,222.14 $1,244.62 0.000920 0.000058 0.000058

$3.59 $10.69 $1,178.85 $1,200.23 0.000898 0.000056 0.000056

$3.54 $10.17 $1,137.67 $1,158.01 0.000876 0.000055 0.000055

$3.49 $9.68 $1,098.46 $1,117.83 0.000854 0.000053 0.000053

$3.45 $9.22 $1,061.12 $1,079.57 0.000834 0.000052 0.000052$3.40 $8.79 $1,025.54 $1,043.12 0.000813 0.000051 0.000051

$3.35 $8.38 $991.62 $1,008.38 0.000794 0.000050 0.000050

$3.31 $8.00 $959.26 $975.25 0.000775 0.000048 0.000048

Duration Duration effect ConvexityValue Bond due to duration convexity effect

Value Bond due to duration convexity effect

Value Bond due to duration convexity effect


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0.25% -0.25% 0.25% -0.25%

$7.58 $35.11 $1,817.30 $1,887.53 0.003713 0.000232 0.000232

$7.42 $31.86 $1,686.75 $1,750.47 0.003580 0.000224 0.000224

$7.25 $28.95 $1,568.17 $1,626.06 0.003450 0.000216 0.000216

$7.09 $26.34 $1,460.32 $1,512.99 0.003324 0.000208 0.000208

$6.92 $23.99 $1,362.09 $1,410.08 0.003201 0.000200 0.000200$6.76 $21.89 $1,272.51 $1,316.29 0.003082 0.000193 0.000193

$6.61 $20.00 $1,190.71 $1,230.70 0.002967 0.000185 0.000185

$6.45 $18.29 $1,115.91 $1,152.49 0.002854 0.000178 0.000178

$6.30 $16.75 $1,047.42 $1,080.93 0.002745 0.000172 0.000172

$6.15 $15.36 $984.64 $1,015.36 0.002640 0.000165 0.000165

$6.00 $14.11 $927.00 $955.21 0.002537 0.000159 0.000159

$5.85 $12.97 $874.03 $899.97 0.002438 0.000152 0.000152

$5.70 $11.94 $825.27 $849.15 0.002342 0.000146 0.000146

$5.56 $11.01 $780.35 $802.36 0.002250 0.000141 0.000141

$5.42 $10.16 $738.90 $759.22 0.002160 0.000135 0.000135

$5.29 $9.38 $700.62 $719.39 0.002073 0.000130 0.000130


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0.25% -0.25%

$1,421.45 $1,452.17

$1,362.56 $1,391.60

$1,306.84 $1,334.32$1,254.10 $1,280.12

$1,204.15 $1,228.79

$1,156.82 $1,180.17

$1,111.93 $1,134.08

$1,069.35 $1,090.36

$1,028.92 $1,048.87

$990.52 $1,009.48

$954.03 $972.05

$919.34 $936.47

$886.33 $902.63

$854.92 $870.43

$825.00 $839.78

$796.50 $810.58

0.25% -0.25%

$1,662.33 $1,696.63

$1,596.52 $1,628.98$1,534.19 $1,564.94

$1,475.13 $1,504.27

$1,419.13 $1,446.76

$1,366.00 $1,392.22

$1,315.57 $1,340.46

$1,267.67 $1,291.31

$1,222.14 $1,244.62

$1,178.85 $1,200.23

$1,137.67 $1,158.01

$1,098.46 $1,117.83

$1,061.12 $1,079.57$1,025.54 $1,043.12

$991.62 $1,008.38

$959.26 $975.25

Bond due to duration & conv




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question 8 & 9

5 yr bond 10 yr bond 5 yr bond 10 yr bond

Year rate CF CF PV PV Year

1 2.00% 100 100 98.03922 98.03922 1

2 2.50% 100 100 95.18144 95.18144 2

3 3.00% 100 100 91.51417 91.51417 3

4 3.50% 100 100 87.14422 87.14422 45 4.00% 1100 100 904.1198 82.19271 5

6 4.50% 100 76.78957 6

7 5.00% 100 71.06813 7

8 5.50% 100 65.15989 8

9 6.00% 100 59.18985 9

10 6.50% 1100 585.9986 10

Value 1275.999 1312.278

ED Weight

5 yr bond 4.100392 0.492992 2.021459

10 yr bond 6.625774 0.507008 3.359323

5.380782

question 10

MD 5 yr bond 10 yr bond 5 yr bond 10 yr bond 5 yr bond 10 yr bond

Year rate CF CF PV PV T.PV T.PV

1 2.00% 100 100 98.03922 98.03922 98.03922 98.03922

2 2.50% 100 100 95.18144 95.18144 190.3629 190.3629

3 3.00% 100 100 91.51417 91.51417 274.5425 274.5425

4 3.50% 100 100 87.14422 87.14422 348.5769 348.5769

5 4.00% 1100 100 904.1198 82.19271 4520.599 410.96366 4.50% 100 76.78957 460.7374

7 5.00% 100 71.06813 497.4769

8 5.50% 100 65.15989 521.2791

9 6.00% 100 59.18985 532.7086

10 6.50% 1100 585.9986 5859.986

1275.999 1312.278 5432.121 9194.674

MD Weight

5 yr bond 4.257152 0.492992 2.09874

10 yr bond 7.006652 0.507008 3.552431

5.651171effect of delta y on ED

5 yr bond 10 yr bond 5 yr bond 10 yr bond

Year rate CF CF PV PV Year

1 2.00% 100 100 98.03922 98.03922 1

2 2.50% 100 100 95.18144 95.18144 2

3 3.00% 100 100 91.51417 91.51417 3

4 3.50% 100 100 87.14422 87.14422 4

5 4.00% 1100 100 904.1198 82.19271 5


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6 4.50% 100 76.78957 6

7 5.00% 100 71.06813 7

8 5.50% 100 65.15989 8

9 6.00% 100 59.18985 9

10 6.50% 1100 585.9986 10

1275.999 1312.278ED W weighted ED

5 yr bond 4.100265 0.492992 2.021396

10 yr bond 6.625231 0.507008 3.359047

5.380443


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4.40% 100 77.23195 6 4.60%

4.90% 100 71.54373 7 5.10%

5.40% 100 65.6561 8 5.60%

5.90% 100 59.69478 9 6.10%

6.40% 1100 591.5295 10 6.60%

1281.245 1321.011


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10 yr bond 5 yr bond 10 yr bond

CF PV PV

100 97.79951 97.79951

100 94.71883 94.71883

100 90.85102 90.85102

100 86.30731 86.30731100 893.3309 81.2119

100 75.6965

100 69.89486

100 63.9377

100 57.94815

1100 572.4187

Value 1263.008 1290.785

10 yr bond 5 yr bond 10 yr bond

CF PV PV

100 97.94319 97.94319

100 94.99599 94.99599

100 91.24814 91.24814

100 86.80825 86.80825

100 899.7856 81.79869


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100 76.35015

100 70.59615

100 64.66788

100 58.68965

1100 580.5246

1270.781 1303.623


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question 1

coupan rate 8%

FV 1000

YTM 9% 7% 8%

PV ($961.10) ($1,041.00) ($1,000.00)

question 5R1 5.988%

R2 7.360%

R3 8.024% 1.260568

R4 8.608% 1.39138

R5 8.514% 1.504648

question 6 R1 R2 R3 R4 R5

YC 5.988% 7.360% 8.024% 8.608% 8.514%

TIME 1 2 3 4 5

-983.6230202 80 80 80 80 1080

PVt 75.48 69.4069 63.463474 57.49689 717.77576PV 983.623

IRR 8.415%

question 7CF Govt Sec. -987.5 80 1080

YTM 8.708%

nominal sprea 3.852%

question 8 Z Spread YC TOTAL CF PV

7.060% 5.988% 13.048% 80 70.76619

7.060% 7.360% 14.420% 1080 824.9311

PV 895.6973

Z Spread 7.060%

question 9

Z Spread YC TOTAL CF PV

9.764% 5.988% 15.752% 80 69.1

9.764% 7.360% 17.124% 1080 787.3

PV 856.4

Z-SPREAD 9.764%OAS 7.060%

Option cost 2.704%


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extra expense on manager compensation 15000

less expence rent 8000

extra non-op expense 10000

extra deprec 1000synergetic saving 50000

Table A

Acquirer buyer

Sales 2500000 2500000 2500000

COGS 2000000 2000000 2000000

SGA 125000 58000 115000

GM 375000 442000 385000

Depreciation 45000 44000 44000

EBIT 330000 398000 341000

TAX@30% 99000 119400 99000

EBIT(1-T) 231000 278600 242000

TABLE C equity cost post tax de WACC Acqui WACC buyer

Rf 5% 5%

ERP 6%

Beta 1.1 6.60%

Beta adj factor (size 1.15 0.99%

Non-Mkt. Firm RP 2% 2%

Non-Mkt. Ind. RP 1% 1%Pretax Cost Debt 7%

Tax rate 30%

Optimal D/V 40%

Current D/V 30%

Earning Growth 5%

15.59% 4.90% 11.31% 12.38%

Residual Income

Acquirer Buyer

EBIT(1-T) 278600 242000Kf 11.31% 12.38%

At-1 1625000 1625000

RI 94747.5 40776.25

growth 5% 5%

TV 1575623.614 579914.1609

BVo 1625000 1625000

Value of firm 3200623.61 2204914.16
mailto:TAX@30%25mailto:TAX@30%25


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share price per share 32.079 27.534

SAPM Ex sol

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