Commonwealth Property Development Project Case Study
Autor: Kristine101 • February 26, 2018 • Case Study • 403 Words (2 Pages) • 1,214 Views
Case Title:
Commonwealth Property Development Project
Case Presented to:
USLS Graduate School of Management in partial fulfilment of the requirement in
MBA 207-A
By:
Group III
Salazar, Mary Kristine A.
Moralidad, Ardez Riz
Espiritu, Edelbert
Dioneo, Dennisa
Arriola, Manuel Antonio
Date:
October 7, 2017
Group III Answers
Commonwealth Property Development Project Case Study
Group Case No. 5
Requirement No. 1
Compute the present values of preferred dividends to be received by UP under a 75-year, 50-year and 25-year lease terms.
Answer:
Preferred dividends to be received:
5 million x 12%
=
₱ 600 million
at 75-year lease:
600 million [1 - (1.10)-75 / 0.10] - 600 million (1.10)-1
PV of preferred dividends =
₱
5,449,828,085.00
at 50-year lease:
600 million [1 - (1.10)-50 / 0.10] - 600 million (1.10)-1
PV of preferred dividends =
₱
5,403,434,147.00
at 25-year lease:
600 million [1 - (1.10)-25 / 0.10] - 600 million (1.10)-1
PV of preferred dividends =
₱
4,900,769,465.00
Requirement No. 2
Assuming that a straight-lease scheme is adopted of preferred stocks, compute the present value of the lease payment.
Answer:
98.5 hectares x 10,000 sq. m. = 985,000 sq. m.
Equity interest in common stocks:
5 billion
Fixed payment:
985,000 sq. m. x P41.50/sq. m. =
...