No EXCEL. Everything in word document with manual calculations and formulas mentioned. Give legitimate online references for the formulas used not book references. Refer citations from the financial reports of Krones in or beside the calculations.
Investing Country: Germany, Bank: Deutsche Bank
The country we are investing Turkey, On the company: Krones, Industry: Engineering.
Financial reports of Krones:
2020 report (has 2019 info too):
2019 report (has 2018 info too):
Calculations must be based on 2018, 2019, and 2020 then make the decisions.
Our Group will be given a Central Bank Loan (Professor Bank) of USA $350 million dollars which we will on -lend in whole or part to our corporate customer (The loan must first be converted into our Phase 1 bank currency-Germany’s Currency – forward contract, I will give you our phase 1 work). Which means that there will be foreign exchange risks to consider. Terms of the Loan are Interest rate US $ Libor plus margin of 1.25 %.per annum Repayment in 10 equal annual instalments of Principal plus interest for a 10-year term. Each week including week 8 will be considered one year so there will be a final balloon payment to cover the remaining 6 years required.
Break-even point after 2 years. Full loan (not part of $350mil) advised. Use the 5 Cs (Cashflow, Capital (net worth), Conditions (what terms? Restrictive covenants?), Communication (know the client), Collateral) of credit to determine if Krones qualifies for a loan (look at leverage, ROE, ROA too). Do duration gap analysis, take 6% rate of interest for now with a change of rate of 2% (take estimates of duration and weighted duration).