CBmE+195+-+Chemical+Engineering+Economics+-+Problem+Set+_4+Solutions+-+Fall+2010

CBmE+195+-+Chemical+Engineering+Economics+-+Problem+Set+_4+Solutions+-+Fall+2010

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Unformatted text preview: @Cup,-to.lltsse+Pv-Ic-iY\BlM od \ ~--,--=-'rob~\eMA~-::-S.;_+-_~----,----4_------:CA""--"-'l2-P I' ed. p--'--VOT-Tj-=--ec;-'----'--+-O.-~_'___'_V1.::.::...:;...V1.;,.....;..;;:CJ'__ V\--=-...::----_H-'--C-.-=-ll-'----='2.:'__O-L.-1 _ D ~ \ o g +-(2C-- G\) ,e. ,IJ ft = I D - ? p., ~ r"'\ ~ e::- f- ~---,,<-'----- '--'-/ ""-C) lD+E:j w~ex~-- a.~$e..~ bL f.S-A [3D - e.b+- kh ::::. 0 IVI pall} a.) f3E ~ D-- G.-'M 0 u..V\.~ O~ deb+ ----f3tt== ~ 'Ai ~~A .------- ( G n eM) W e... c.~"" e.s +t VV\o.. +e AL...!....'V\A~o~\~~\N\'--'-=--~=-=---'---~--'----"'( od~uc=,-,S=-- __ ___--=~~0CIg 6e..k LAS\ \itS +lt1e.. -hJyWt \(). . V\ ro'(t- Q). ~p\k\ bo~ oV\-he, (ll,Se-+- be.A-rA"> o~e,v-HA1~s. bl(\~ e.Ar~.(A~~I_. _ CBmE195 Fall2010 ProblemSet#4,Question14a),b),andc) Table1 AssumesDebtBeta=zero PercentOf Costo f Costof Amalgamated Amalgamated Capital(%) Capital(%) Products' Products' BasedOn BasedOn Division TotalRevenues Competitor'sName D/(D+E) E/(D+E) DebtBeta EquityBeta AssetBeta EquityBeta AssetBeta Chemicals 20 ConsolidatedChemicals 0.400 0.600 0.000 1.200 0.720 9.000 6.600 Polymers 30 MongoMacromolecules 0.200 0.800 0.000 1.600 1.280 11.000 9.400 FoodAdditives 50 Foods&Flavors 0.300 0.700 0.000 0.800 0.560 7.000 5.800 Amalgamated 100 0.400 0.600 0.000 1.347 0.808 9.733 7.040 Products (thewhole company) ProblemSet#4,Question14d) Table 2 AssumesDebtBeta=0.2 PercentOf Costo f Costof Amalgamated Amalgamated Capital(%) Capital(%) Products' Products' BasedOn...
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This note was uploaded on 01/23/2011 for the course CHM ENG 195 taught by Professor ? during the Fall '10 term at University of California, Berkeley.

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CBmE+195+-+Chemical+Engineering+Economics+-+Problem+Set+_4+Solutions+-+Fall+2010

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