Bco315 corporate finance task brief & rubrics task first ass

1. BCO315 Corporate Finance Task brief & rubrics
Task: First Assignment (30% of the Final grade)
· This is an individual assignment
· Students are required to answer the questions below and make
the calculations to support them
Formalities:
· Student must submit 1 documents:
· Excel document with all the calculations and results clearly
identified.
LAUNCH: WEEK 3 / DELIVERY: October 17th, 2021,
23:59HRS ON MOODLE
It assesses the following learning outcomes:
• Demonstrate a deep understanding of the theory and practices
of financing a firm and its capital structure.
• Evaluate the financing risk that may result from the chosen
debt ratio.
Case Promaut Corporation
Promaut is an engineering company which was founded 30 years
ago by the current President, Mr. Joan Matutano.
The company showed profits for most of the years, but on the
year 2015 the company tried to scale up with debt heavily
increasing their operations in the export markets. The situation
had a negative development due to wrong strategic approach
and a lack of control of the company managers. As a result from
this experience and after a very slow recovery, Mr. Matutano is
now much more risk averse, and therefore he is trying to avoid

2. debt as much as possible. Actually the company has a 0 debt.
Mr Matutano has now a new project, this is a new venture with
the self-drive cars industry, and he believes this could be a very
profitable business. The required investment for this project is
of 70M€, and the expectations for profitability show annual
pretax earnings of 10M€ in perpetuity.
Now the company, or Mr Matutano, has to decide whether to
finance with debt or equity. Even though we dislike debt, he
hired lately a very well known CFO who believes that debt
would be adding value to shareholders. According to the first
estimates based on Peter Franciscus research (Peter is the “new”
CFO), the best deal they could find is a 50% debt investment,
this means that the company should rise half of the investment
in new chares and 50% with Bonds. An increased level of debt
would make the company more vulnerable and therefore the
financing costs would sharply increase up to an undesirable
level.
The bonds would be issued at par value with 6% annual coupon
payments.
Promaut is a Spanish company, and the income tax rate is 25%
at the present moment.
The company has a market capitalization of 350M€, and 7M
shares outstanding.
The company cost of equity is 10%.
Mr. Matutano is not only very risk averse, he is a man who does
not trust anybody, and feels very stressed buy this situation, his
wife has adviced him to talk to you, as even though you are still
studying, she feels you are a brilliant student, and she fully
trust you, so Mr. Matutano has asked you for advice. If he is
satisfied with the advice, you will have a good opportunity to
find your first paid job after you finish your studies.
1.-The first thing he wants to know is, if he should issue debt or
equity for this investment and why.
2.- As Promaut is a public company, he would like to know
which is the market value balance sheet before the investment

3. in the new project is announced.
3.- If Promaut decides to make the investment 100% with
Equity, as Mr. Matutano prefers, what would be the Net Present
Value of the project?
4.- What would be the market value balance sheet after the
company announces the project fully financed by Equity? How
many shares will have to be issued in order to finance the
project? And what would be the price per share?
5.- Construct the market value balance sheet after equity issue
and before announcing the new investment project. How many
chares outstanding has the company? and how much is the price
per share?
6.- Construct the market value Balance Sheet after the new
investment has been done.
7.-What will be the market value of the company if the finally
decide to issue debt?
8.- Prepare a balance sheet at market value after the debt is
issued and the investment is done, what will be now the value
per share?
9.- Which of the alternative do you think would be better for
Mr. Matutano, as he is the majority shareholder?
Rubrics
Descriptor
9-10
The student demonstrates an excellent understanding of the

4. concepts.
8-8.9
The student demonstrates a good understanding of the concepts.
7-7.9
The student demonstrates a fair understanding of the concepts.
6-6.9
The student demonstrates some, but insufficient understanding
of the concepts.
3-5.9
The student demonstrates insufficient understanding of the
concepts. They may mention some relevant ideas or concepts,
although it is clear that the relationship between them is not
understood by the student.
1-2.9
The student demonstrates insufficient understanding of the
concepts and does not mention any relevant ideas or concepts.
0
The student leaves the question blank or cheats.
A. SYSTEM DISORDER
1. Allergic reaction to drugs – System disorder
B. Complete template for the following Medications:
2.Penicillin
3.Morphine
4. Aspirin
5.Epinephrine

5. 6.Benadryl
7.Tagamet
8.Heparin
C. Complete skill for the following:
9…12 lead ECG & ECK monitoring
10. Oxygen administering
ACTIVE LEARNING TEMPLATES
Medication
STUDENT NAME _____________________________________
MEDICATION
_____________________________________________________
_____________________ REVIEW MODULE CHAPTER
___________
CATEGORY CLASS
_____________________________________________________
_________________
ACTIVE LEARNING TEMPLATE:
PURPOSE OF MEDICATION
Expected Pharmacological Action
Complications
Contraindications/Precautions
Interactions

6. Medication Administration
Evaluation of Medication Effectiveness
Therapeutic Use
Nursing Interventions
Client Education
STUDENT NAME: MEDICATION: REVIEW MODULE
CHAPTER: CATEGORY CLASS: Therapeutic Use:
Complications: Contraindications/Precautions: Interactions:
Evaluation of Medication Effectiveness: Expected
Pharmacological Action: Nursing Interventions: Medication
Administration: Client Education:
ACTIVE LEARNING TEMPLATES
System Disorder
STUDENT NAME _____________________________________
DISORDER/DISEASE PROCESS
_____________________________________________________
_____ REVIEW MODULE CHAPTER ___________
ACTIVE LEARNING TEMPLATE:
ASSESSMENT SAFETY
CONSIDERATIONS
PATIENT-CENTERED CARE

7. Alterations in
Health (Diagnosis)
Pathophysiology Related
to Client Problem
Health Promotion and
Disease Prevention
Risk Factors Expected Findings
Laboratory Tests Diagnostic Procedures
Complications
Therapeutic Procedures Interprofessional Care
Nursing Care Client EducationMedications
STUDENT NAME: DISORDERDISEASE PROCESS: REVIEW
MODULE CHAPTER: Pathophysiology Related to Client
Problem: Health Promotion and Disease Prevention: Risk
Factors: Expected Findings: Laboratory Tests: Diagnostic
Procedures: Nursing Care: Therapeutic Procedures:
Medications: Client Education: Interprofessional Care:
Alterations in Health: Safety Considerations: Complications:
ACTIVE LEARNING TEMPLATES
Nursing Skill
STUDENT NAME _____________________________________
SKILL NAME
_____________________________________________________

8. _______________________ REVIEW MODULE CHAPTER
___________
ACTIVE LEARNING TEMPLATE:
Description of Skill
Indications
Outcomes/Evaluation
CONSIDERATIONS
Nursing Interventions (pre, intra, post)
Potential Complications
Client Education
Nursing Interventions
STUDENT NAME: SKILL NAME: REVIEW MODULE
CHAPTER: Indications: Outcomes/Evaluation: Client
Education: Potential Complications: Description of Skill:
Nursing Interventions: Nursing Interventions (pre, intra, post):