TimeTech T-200 and ChipTech Acquisition Financing Decision
Student-led · From cost of capital, WACC and EBIT-EPS through to credit risk and shareholder dilution
No single metric makes any of the three financing options the perfect choice. You need to obtain the market values, issue terms, credit thresholds, shareholder concerns and strategic constraints, independently calculate the WACC, the EPS under three scenarios, the indifference points and the interest cover ratios, and then put forward a capital structure recommendation with conditions attached for its execution.
The question
Compare the three financing options — all-debt, all-equity and a debt-equity mix — balancing the cost of capital, earnings sensitivity, credit risk, shareholder dilution, deal execution and room for future financing.
Company background
TimeTech Ltd. plans to raise US$15 million to fund research and development for the T-200 project and the corporate acquisition of ChipTech.
Techniques
资本成本与 WACCEPS、杠杆与无差别点信用风险与资本结构建议与实施治理询证与专业沟通Who it suits
Recommended for learners who already have a firm grasp of CAPM, WACC, EPS, financial gearing, the interest cover ratio and capital structure theory, and who want to practise making financing decisions across multiple roles.
All courses
- TimeTech's Consolidated Financial Statements Following the Acquisition of ChipTech
- TimeTech Project Financing and Working Capital Management
- TimeTech Dividend Policy, Buybacks and Capital-Return Gates
- TimeTech Business Valuation and the Strategic Fundraising Gate
- TimeTech M&A Evaluation, Integration and Restructuring Gateways
- TimeTech Organisational Structure Design and Change Pilot