1) As a savings objetive for your future you decide

making montlhy installments in a pension fund for

are going to be adjusted at the inflation rate annua
savings, you get a pension that will last you the res
pays you $18.000 every month. Let’s suppose that
10% a.c.a in your saving period, and 8% a.c.a when
information what was the amount of the first insta
a.c.a

a.c.a m.c.m
R1 10% 0.797%
R2 8% 0.643%

Pension $ 18,000

PV of pension $2,797,624.46

Firts anual instalment $217,624.15

Firts monthly instalment $17,353.66
ure you decide that you`re going to start
ension fund for 35 years. Installments that also
tion rate annually. In 35 years thanks to your
ast you the rest of your life (perpetuity) and
s suppose that your pension fund gives you a
8% a.c.a when you retired. Given this
of the first instalment. The inflation rate is 3%

0.75 pt
 Let’s suppose that you get a loan for $370.000 with an 8% s
Suppose you pay monthly installments: how much will your
What would be the balance of the loan after you pay the 40
After you pay your 45th installment, you decide to refinanc
loan for the balance of the current loan with an 2% m.c.m f
monthly installments, what would the amount you first pay

A LOAN $ 370,000
a.c.a 8% r month 1.291%
T 10 120 months

Installments $6,081.2

B Balance interest Amortization Installamet

1 $ 370,000 $ 4,776 $1,304.71 $6,081.21
2 $ 368,695.29 $ 4,760 $1,321.56 $6,081.21
3 $ 367,373.73 $ 4,743 $1,338.62 $6,081.21
4 $ 366,035.11 $ 4,725 $1,355.90 $6,081.21
5 $ 364,679.22 $ 4,708 $1,373.40 $6,081.21
6 $ 363,305.81 $ 4,690 $1,391.13 $6,081.21
7 $ 361,914.68 $ 4,672 $1,409.09 $6,081.21
8 $ 360,505.59 $ 4,654 $1,427.28 $6,081.21
9 $ 359,078.31 $ 4,636 $1,445.71 $6,081.21
10 $ 357,632.61 $ 4,617 $1,464.37 $6,081.21
11 $ 356,168.24 $ 4,598 $1,483.27 $6,081.21
12 $ 354,684.96 $ 4,579 $1,502.42 $6,081.21
13 $ 353,182.54 $ 4,559 $1,521.82 $6,081.21
14 $ 351,660.72 $ 4,540 $1,541.46 $6,081.21
15 $ 350,119.26 $ 4,520 $1,561.36 $6,081.21
16 $ 348,557.90 $ 4,500 $1,581.52 $6,081.21
17 $ 346,976.38 $ 4,479 $1,601.94 $6,081.21
18 $ 345,374.44 $ 4,459 $1,622.62 $6,081.21
19 $ 343,751.83 $ 4,438 $1,643.56 $6,081.21
20 $ 342,108.26 $ 4,416 $1,664.78 $6,081.21
21 $ 340,443.48 $ 4,395 $1,686.27 $6,081.21
22 $ 338,757.21 $ 4,373 $1,708.04 $6,081.21
23 $ 337,049.17 $ 4,351 $1,730.09 $6,081.21
24 $ 335,319.08 $ 4,329 $1,752.43 $6,081.21
25 $ 333,566.65 $ 4,306 $1,775.05 $6,081.21
26 $ 331,791.61 $ 4,283 $1,797.96 $6,081.21
27 $ 329,993.64 $ 4,260 $1,821.17 $6,081.21
28 $ 328,172.47 $ 4,237 $1,844.68 $6,081.21
29 $ 326,327.79 $ 4,213 $1,868.50 $6,081.21
30 $ 324,459.29 $ 4,189 $1,892.62 $6,081.21
31 $ 322,566.67 $ 4,164 $1,917.05 $6,081.21
32 $ 320,649.62 $ 4,139 $1,941.80 $6,081.21
33 $ 318,707.82 $ 4,114 $1,966.87 $6,081.21
34 $ 316,740.95 $ 4,089 $1,992.26 $6,081.21
35 $ 314,748.69 $ 4,063 $2,017.98 $6,081.21
36 $ 312,730.71 $ 4,037 $2,044.03 $6,081.21
37 $ 310,686.69 $ 4,011 $2,070.42 $6,081.21
38 $ 308,616.27 $ 3,984 $2,097.14 $6,081.21
39 $ 306,519.13 $ 3,957 $2,124.22 $6,081.21
40 $ 304,394.91 $ 3,930 $2,151.64 $6,081.21
41 $ 302,243.27 $ 3,902 $2,179.42 $6,081.21
42 $ 300,063.85 $ 3,874 $2,207.55 $6,081.21
43 $ 297,856.30 $ 3,845 $2,236.05 $6,081.21
44 $ 295,620.25 $ 3,816 $2,264.92 $6,081.21
45 $ 293,355.34 $ 3,787 $2,294.15 $6,081.21
46 $ 291,061.19 $ 3,757 $2,323.77 $6,081.21
47 $ 288,737.41 $ 3,727 $2,353.77 $6,081.21
48 $ 286,383.65 $ 3,697 $2,384.15 $6,081.21
49 $ 283,999.49 $ 3,666 $2,414.93 $6,081.21
50 $ 281,584.56 $ 3,635 $2,446.11 $6,081.21
51 $ 279,138.45 $ 3,604 $2,477.69 $6,081.21
52 $ 276,660.76 $ 3,572 $2,509.67 $6,081.21
53 $ 274,151.09 $ 3,539 $2,542.07 $6,081.21
54 $ 271,609.02 $ 3,506 $2,574.89 $6,081.21
55 $ 269,034.13 $ 3,473 $2,608.13 $6,081.21
56 $ 266,426.01 $ 3,439 $2,641.80 $6,081.21
57 $ 263,784.21 $ 3,405 $2,675.90 $6,081.21
 58 $ 261,108.31 $ 3,371 $2,710.45 $6,081.21
59 $ 258,397.86 $ 3,336 $2,745.44 $6,081.21
60 $ 255,652.42 $ 3,300 $2,780.88 $6,081.21
61 $ 252,871.55 $ 3,264 $2,816.78 $6,081.21
62 $ 250,054.77 $ 3,228 $2,853.14 $6,081.21
63 $ 247,201.63 $ 3,191 $2,889.97 $6,081.21
64 $ 244,311.65 $ 3,154 $2,927.28 $6,081.21
65 $ 241,384.37 $ 3,116 $2,965.07 $6,081.21
66 $ 238,419.30 $ 3,078 $3,003.35 $6,081.21
67 $ 235,415.95 $ 3,039 $3,042.12 $6,081.21
68 $ 232,373.83 $ 3,000 $3,081.39 $6,081.21
69 $ 229,292.44 $ 2,960 $3,121.17 $6,081.21
70 $ 226,171.27 $ 2,920 $3,161.46 $6,081.21
71 $ 223,009.81 $ 2,879 $3,202.28 $6,081.21
72 $ 219,807.53 $ 2,838 $3,243.62 $6,081.21
73 $ 216,563.91 $ 2,796 $3,285.49 $6,081.21
74 $ 213,278.42 $ 2,753 $3,327.90 $6,081.21
75 $ 209,950.52 $ 2,710 $3,370.87 $6,081.21
76 $ 206,579.65 $ 2,667 $3,414.38 $6,081.21
77 $ 203,165.27 $ 2,623 $3,458.46 $6,081.21
78 $ 199,706.81 $ 2,578 $3,503.11 $6,081.21
79 $ 196,203.71 $ 2,533 $3,548.33 $6,081.21
80 $ 192,655.38 $ 2,487 $3,594.14 $6,081.21
81 $ 189,061.24 $ 2,441 $3,640.53 $6,081.21
82 $ 185,420.71 $ 2,394 $3,687.53 $6,081.21
83 $ 181,733.18 $ 2,346 $3,735.14 $6,081.21
84 $ 177,998.04 $ 2,298 $3,783.35 $6,081.21
85 $ 174,214.69 $ 2,249 $3,832.20 $6,081.21
86 $ 170,382.49 $ 2,200 $3,881.67 $6,081.21
87 $ 166,500.82 $ 2,149 $3,931.78 $6,081.21
88 $ 162,569.05 $ 2,099 $3,982.53 $6,081.21
89 $ 158,586.51 $ 2,047 $4,033.95 $6,081.21
90 $ 154,552.57 $ 1,995 $4,086.02 $6,081.21
91 $ 150,466.54 $ 1,942 $4,138.77 $6,081.21
92 $ 146,327.77 $ 1,889 $4,192.20 $6,081.21
93 $ 142,135.57 $ 1,835 $4,246.32 $6,081.21
94 $ 137,889.25 $ 1,780 $4,301.14 $6,081.21
95 $ 133,588.12 $ 1,725 $4,356.66 $6,081.21
96 $ 129,231.46 $ 1,668 $4,412.90 $6,081.21
97 $ 124,818.55 $ 1,611 $4,469.87 $6,081.21
98 $ 120,348.68 $ 1,554 $4,527.58 $6,081.21
99 $ 115,821.10 $ 1,495 $4,586.02 $6,081.21
100 $ 111,235.08 $ 1,436 $4,645.23 $6,081.21
101 $ 106,589.85 $ 1,376 $4,705.20 $6,081.21
102 $ 101,884.65 $ 1,315 $4,765.94 $6,081.21
103 $ 97,118.72 $ 1,254 $4,827.46 $6,081.21
104 $ 92,291.26 $ 1,191 $4,889.78 $6,081.21
105 $ 87,401.47 $ 1,128 $4,952.91 $6,081.21
106 $ 82,448.57 $ 1,064 $5,016.85 $6,081.21
107 $ 77,431.72 $ 1,000 $5,081.61 $6,081.21
108 $ 72,350.11 $ 934 $5,147.21 $6,081.21
109 $ 67,202.90 $ 868 $5,213.66 $6,081.21
110 $ 61,989.24 $ 800 $5,280.96 $6,081.21
111 $ 56,708.27 $ 732 $5,349.14 $6,081.21
112 $ 51,359.13 $ 663 $5,418.19 $6,081.21
113 $ 45,940.94 $ 593 $5,488.14 $6,081.21
114 $ 40,452.80 $ 522 $5,558.99 $6,081.21
115 $ 34,893.81 $ 450 $5,630.75 $6,081.21
116 $ 29,263.06 $ 378 $5,703.44 $6,081.21
117 $ 23,559.62 $ 304 $5,777.07 $6,081.21
118 $ 17,782.55 $ 230 $5,851.65 $6,081.21
119 $ 11,930.90 $ 154 $5,927.19 $6,081.21
120 $ 6,003.71 $ 78 $6,003.71 $6,081.21
$ 0.00 $ 0 -$0.00
0.000 with an 8% s.c.s for 10 years.
ow much will your first installment be?
fter you pay the 40 th installment?
decide to refinance the loan. You get new
with an 2% m.c.m for 10 years. You pay
mount you first payment be?

0.4 pt

C $ 291,061
m.c.m 2.00%
t 10 tm 120

New installment $6,417.35

 Suppose a seven-year, $1000 bond with an 9% coupon rate and semiannual coupons. If the yield to maturity of the
(annual compounded annually, a.c.a),
A) what price will the bond trade for?
B) If the Market rate a.c.a increases 100 basic points, ¿what would be the price of the bond at the end of the

Face value
Coupon rate
YTM

t (semesters)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14

A)
B)
yield to maturity of the bond is 12%

bond at the end of the year 4?

1000
9% a.c.s r2
12% a.c.a 13.00%
5.8% s.c.s 6.30% 0.6pt

CF

45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
45.00
1045.00

$875.06
$912.25
Suppose a seven-year, $1100 bond with an 11% coupon rate and semiannual coupons. If the yield to maturity of th
(annual compounded annually, a.c.a),
A) what price will the bond trade for?
B) If the Market rate a.c.a increases 150 basic points, ¿what would be the price of the bond at the end of the

Face value
Coupon rate
YTM

t (semesters)
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14

A)
B)
yield to maturity of the bond is 14%

bond at the end of the year 4?

1100
11% a.c.s r2
14% a.c.a 15.50%
6.8% s.c.s 7.47% 0.6pt

CF

60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
60.50
1160.50

$976.05
$998.15
 An investment project with a useful life of 5 years req
investment in CAPEX is going to be depreciated by 10
be done according to inflation in the first year and ac
according with the increases in EBIT). The expected in
$7,000, and 80% of the accumulated KTNO is expecte

EBIT $ 4,200 $ 4,600 $ 4,900 $ 5,7

45% of the initial investment is paid with a 5-year deb

What is the WACC of the project?

What is the NPV of the project?
What is the real cost of Debt?

Now suppose that the company that made this proje

means that the company does not sell CAPEX and KT
per year, and suppose that the company will have 40

0 1 2
CAPEX -$ 10,000
KTNO -$ 2,200 -$ 66 -$ 216
R ktno

Dep $ 1,000 $ 1,000

Dep total $ 1,000 $ 1,000

EBIT $ 4,200 $ 4,600
% 10%

NOPAT $ 2,730 $ 2,990

FCB -$ 12,200 $ 3,664 $ 3,774

Loan $ 5,490

Saldo $ 5,490 $ 4,590.75 $ 3,601.58

Cuota $1,448.25 $1,448.25

Interés $549.00 $459.08
Amortización $899.25 $989.17

Tax shield $192.15 $160.68

FF $ 5,490 -$1,256.10 -$1,287.57

FCF -$ 6,710 $ 2,408 $ 2,487

VPN $ 9,873.77

FCF with no selling -$ 6,710 $ 2,408 $ 2,487

Net debt $ 5,490

Shares Outstanding 40000
g 5%

Terminal value $79,716.55

Enterprice Value $ 54,401.80

FCF with no selling -$ 6,710 $ 2,408 $ 2,487

Share price $ 1.36

eful life of 5 years requires an investment in CAPEX of $10,000 and an invest
be depreciated by 100% using a straight-line method over 10 years, while th
n the first year and according to EBIT growth for the remaining years (The inv
EBIT). The expected inflation is 3% per year. Fixed assets are expected to be s
lated KTNO is expected to be recovered. The tax rate is 35% and the cost of c

$ 4,900 $ 5,700 $ 6,900

paid with a 5-year debt with uniform installments and an interest rate of 10%

t?

that made this project does not want to teminate in the year 5 but to keep i
not sell CAPEX and KTNO at the enf of the 5 years), the company expects the
company will have 40.000 shares outstanding for this project. ¿what is the fa

3 4 5
$ 6,300 DEP Capex 1
-$ 162 -$ 432 -$ 647
$ 3,239

BV
$ 1,000 $ 1,000 $ 1,000 Sell
Capital Gain
Tax
Net gain
$ 1,000 $ 1,000 $ 1,000
$ 4,900 $ 5,700 $ 6,900 KTNO
7% 16% 21% R KTNO
loss
$ 3,185 $ 3,705 $ 4,485 Tax shield
Net gain
$ 4,023 $ 4,273 $ 14,376
$ 4,838 Total investment
Loan

$ 2,513.49 $ 1,316.59 $ - Cuota

$1,448.25 $1,448.25 $1,448.25 kd

$360.16 $251.35 $131.66 r
$1,088.09 $1,196.90 $1,316.59
DEUDA
$126.06 $87.97 $46.08 EQUITY
D+E
-$1,322.19 -$1,360.28 -$1,402.17
D/E
$ 2,701 $ 2,913 $ 12,974 D
E

$ 2,701 $ 2,913 $3,435.40 WACC

$ 2,701 $ 2,913 $ 83,152

f $10,000 and an investment in KTNO of $2,200. The
over 10 years, while the investment in KTNO is going to
emaining years (The investment in KTNO increases
ets are expected to be sold at the end of 5 years for
is 35% and the cost of capital is 12%.

d an interest rate of 10%

the year 5 but to keep it in operation indefinitely (this

e company expects the project to grow at a rate of 5%
project. ¿what is the fair price of the share?

$ 1,000.00 Inf 3%
T 35%

$ 5,000.00 kd 10%
$ 7,000 Comisión 2%
$ 2,000
$ 700
$ 6,300
$ 3,723
$ 2,978.17
$ 744.54
$ 260.59
$ 3,238.76

-$ 12,200
$ 5,490

$1,448.25

6.5000%
12.0000%

$ 5,490
$ 6,710
$ 12,200

0.818181818181818
45%
55%

9.5250000000000000%

1.25 pt
 Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

Year 1 2 3 4
FCF ($ millions) 53 68 78 75

After then, the free cash flows are expected to grow at the industry average of 4% per year. Using the discounted fr
flow model and a weighted average cost of capital of 14%, estimate the share price for Heavy Metal if the firm ha
excess cash, debt of $300 million, and 40 million shares outstanding. (Hint: Find Enterprise Value).

1 2 3 4 5
FCF ($ millions) 53 68 78 75 82

Terminal value 852.8 g 4%

WACC 14%

1 2 3 4 5
FCF ($ millions) 53 68 78 75 934.8

Enterprise value 681.37

Debt 300
Shares outstanding 40

Share price 9.53

ws over the next five years:

5
82

year. Using the discounted free cash

for Heavy Metal if the firm has no
: Find Enterprise Value).

0.5
 Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

Year 1 2 3 4
FCF ($ millions) 53 68 78 75

After then, the free cash flows are expected to grow at the industry average of 5% per year. Using the discounted fr
flow model and a weighted average cost of capital of 16%, estimate the share price for Heavy Metal if the firm ha
excess cash, debt of $250 million, and 40 million shares outstanding. (Hint: Find Enterprise Value).

1 2 3 4 5
FCF ($ millions) 53 68 78 75 82

Terminal value 782.7272727273 g 5%

WACC 16%

1 2 3 4 5
FCF ($ millions) 53 68 78 75 864.727273

Enterprise value 599.33

Debt 250
Shares outstanding 40

Share price 8.73

ws over the next five years:

5
82

year. Using the discounted free cash

for Heavy Metal if the firm has no
: Find Enterprise Value).

0.5
The riskier a project, the more likely it is that the NPV will be lower, because the direct effect of an increase
in project risk is:

a. The salvage value decreases

b. The cost of equity capital increases
c. The tax rate increases
d. Inflation and devaluation increase

Respuesta: b

0.25
ffect of an increase
In the construction of free cash flow (FCF) for the project, which of the following is true?

a. In the free cash flow (FCF) for the project, one does not account for depreciation.
b. In the free cash flow (FCF) for the project, one does not account for the changes in net working capital.
c. Construction of free cash flow (FCF) for the project requires unlevered net income plus, among other things, depreci
d. Construction of free cash flow (FCF) for the project itself requires unlevered net income plus, among other things, de
expenditures.

Respuesta: c

0.25 pt
 working capital.
, among other things, depreciation.
e plus, among other things, depreciation and financial
Your company needs to finance a new project, it needs $100.000 to star the pr
looking for ways to finance this project, and you find 3 options. The tax rate of
A) Loan with a bank up to $60.000 for 5 years with an interest rate of 10% a.ca
B) Issue up to $45.000 in new shares with a cost of 9%
c) A loan with another bank up to $30.000 with an interest rate of 6% s.c.s

Find the WACC of the project

Cost Real cost Amount Proportion

A 10% 6.500% $ 60,000 60%
B 9% 9% $ 10,000 10%
C 6% 8.03% $ 30,000 30%
$ 100,000

WACC 7.210%
eds $100.000 to star the project. You as the CFO of the company have to start
d 3 options. The tax rate of the project is 35%.
an interest rate of 10% a.ca
9%
nterest rate of 6% s.c.s

0.5 pt
Organize from better to worse the alternatives rates that the bank g
for an investment you want to make: (0.5)
2% m.c.m (monthly compound monthly)
12.5% a.c.a (annual compound annually)
0.01% d.c.d (daily compounded daily)
2.5% q.c.q (quarterly compounded quarterly)

A 2% $ 1.268 1
B 12.50% $ 1.125 2
C 0.01% $ 1.037 4
D 2.50% $ 1.104 3
es rates that the bank gives you

0.5 pt