Assignment 4 - FINA 537 Equity Valuation Professor Laura...

This preview shows page 1 out of 1 page.

FINA 537 Equity Valuation Professor Laura Xiaolei Liu CITIC Tower II Due Friday December 11 before class (e-copy and hard copy)Assume you worked in the property development team of CPL at the end of June 2000, you need to evaluate the offer given by the seller and give your recommendation to Mr. Larry Yung. After several days of hard work, your team reached an agreement that you should focus on capital value (price) indices in your analysis and ignore the rental indices. You also agreed that the information in Exhibit 1 is redundant and you can ignore it in your analyses. Exhibit 2 and 3 show some post-mid-2000 information. You are not allowed to use these numbers as they are not known in June 2000. Answer the following questions: 1.As the price of the option, the sellers requested an equity stake of 5% in the completed project. (For example, if in the end the CITIC Tower II has 100 floors, the sellers can get 5 floors. There will be

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture