Southport Minerals

Published: 2021-06-29 07:00:59
essay essay

Category: Business

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
Introduction:-
Southport Minerals, Inc. is the largest U.S. sulphur producer had been enjoying sharply increasing profitability after five years of low profitability. So they were financially well positioned for significant diversification and had high liquidity in the system with no debt in their capital structure. So they were in the hunt for attractive investment opportunities.
In 1967, Southport Minerals found an opportunity for a major financial commitment to develop a copper mine in Indonesia. The major body of the copper ore was at an extremely inaccessible location in the Firstburg, Indonesia. Southport Indonesia (SI), a wholly-owned subsidiary of Southport Minerals, entrusted with a responsibility of mining. While contemplating to invest in the copper mine Southwest Minerals tentatively negotiated a complex financing package for the project. While assessing the new investment plan Southport Minerals, Inc came up with 4 different methods for analyzing the investment worth of the project:
 Discount at Southport Minerals' cost of capital, ignore the specifics of the financing choice
 Discount at a premium above Southport Minerals' cost of capital; ignore the specifics of the financing choice
 Discount at Southport Minerals' cost of capital, thereby taking into consideration the specific financing choice

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read