Please complete the following and submit your answers on this single page – you will not need to submit your backup material (calculations).We will discuss these computations and this case in class.
Using Exhibit 12 & information in the case on valuation find the following based on the dates given:
Jan-93Jan-96
A. Dow’s Discount Rate for evaluating Argentine Projects__________________
B. Dow’s Discount Rate for evaluating similar U.S. Projects__________________
C. Risk Premium for Argentine Projects (= A. – B.)__________________
Using Exhibit 9a & 9b (Consolidated PBB) & information in the case on valuation find the following:
D. Stage/Phase 1 – PBB PV (@ R = ______% from Jan-96)_________
Using Exhibit 10 (Polisur 2 Poly Plants) & information in the case on valuation find the following:
E. Stage/Phase 2 – Polisur PV (@ R = ______% from Jan-96)_________
Based on your results from parts D. and E., what would you bid for Phase 1 and Phase 2?
F. Stage/Phase 1 – PBB Bid ($)_________
G. Stage/Phase 2 – Polisur Bid ($)_________
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