MY TRINH COSMETICS

MARKET VALUE

* Term loan * Office mortgage * Preference share

Book value 9,000,000 Book value 40,000,000 Total book value 40,000,000
Original rate 10.00% Maturity (years) 5 Par value per share 10
Current rate 8.00% Original rate 8.00% Number of shares 4,000,000
Maturity (years) 4 Annuity factor 8.11 Current price 15.50
PMT 450,000 PMT 4,931,638 Market value 62,000,000
Current rate 6.00%
Annuity factor =
6.73 Current annuity factor 8.53
(1-(1+rd)^(-n))/rd

Market value 9,605,947 Market value 42,067,871

* Debentures * Paid-up capital

Book value 29,000,000 Total book value 105,000,000
Coupon rate 9.00% Par value per share 1
Current rate 8.50% Number of shares 105,000,000
Maturity (years) 10 Current price 5.90
PMT 1,305,000 Market value 619,500,000

Annuity factor = *Bank overdraft

13.29
(1-(1+rd)^(-n))/rd
Book value 8,500,000
Market value 29,963,842

COST OF CAPITAL

* Bank overdraft * Debentures * Paid-up capital *Preference shares

Current rate 10.00% Current rate 8.50% rm 12.50% Dividend 1.00
Effective interest
Effective interest rate 10.25% 8.68% rf 5% Current price 15.50
rate
Cost of preference
β 1.45 6.45%
shares

* Term loans *Mortgage Cost of ordinary shares 15.88%

Current rate 8% Current rate 6.00%
Effective interest
Effective interest rate 8.16% 6.09%
rate

SUMMARY
Tax rate 30%

WEIGHTED
BEFORE
CAPITAL BASE MARKET VALUE WEIGHT AFTER TAX COST AFTER TAX
TAX COST
COST
Bank overdraft 8,500,000 0.0110 10.25% 7.18% 0.08%
Term loans 9,605,947 0.0124 8.16% 5.71% 0.07%
Debentures 29,963,842 0.0388 8.68% 6.08% 0.24%
Office mortgage 42,067,871 0.0545 6.09% 4.26% 0.23%
Paid-up capital 619,500,000 0.8028 15.88% 15.88% 12.75%
Preference shares 62,000,000 0.0803 6.45% 6.45% 0.52%
WACC 771,637,659 13.88%