thanks @BWinter and @HAC30 for a knowledgeable discussion.
My take on it: discount rate is to come up with a basis to evaluate feasibility... separate to cost of capital.
Cost of capital -
70% debt - i have no idea but let's say 10% is what we get. That gives us net 7% cost (1-30% tax)
30% equity - this is essentially free but cost depends on the discount offered to new investors from full potential. will it be 5% or 10%?
focusing on the equity component, say they need $400 million.
if we think AUZ ends up being valued at $500 million and the new shareholders stump up $400million... then current holders would end up being valued at $100million. Is this correct? It tells me there is no upside for holding on.. unless you stump up cash for the new issue and hope the $500 million valuation goes up to say $650million... giving a 30% return to all holders. But i say this again.. that never gets even close to last week's sp so not much upside left for us.
i just cant get over this... hmm.. too much analysis never did anyone much good
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Last
1.1¢ |
Change
0.001(10.0%) |
Mkt cap ! $15.38M |
Open | High | Low | Value | Volume |
1.0¢ | 1.1¢ | 1.0¢ | $1.602K | 150.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 552624 | 1.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.1¢ | 8769099 | 27 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 552624 | 0.010 |
26 | 5750274 | 0.009 |
30 | 13267000 | 0.008 |
38 | 23942134 | 0.007 |
18 | 6275551 | 0.006 |
Price($) | Vol. | No. |
---|---|---|
0.011 | 8769099 | 27 |
0.012 | 17431214 | 15 |
0.013 | 2605454 | 9 |
0.014 | 3383092 | 9 |
0.015 | 1146518 | 8 |
Last trade - 10.00am 12/07/2024 (20 minute delay) ? |
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