International finance and investment strategies for Iron Ore Miners, Dr Molavi , Dr Tehrani

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Transcript of International finance and investment strategies for Iron Ore Miners, Dr Molavi , Dr Tehrani

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Ques(on#1HowIranianCompaniestakedecisionforitsfinanceandinvestmentsstrategies?

Ques(on#2HowInterna(onalCompaniestakedecisionforitsfinanceandinvestmentsstrategies?

Ques(on#3WhatisTheroleofcompanies’capitalStructureforfinanceandinvestmentstrategies?

Ques(on#4Whatisyourcompany'scapitalstructure?

CapitalStructureandCostofCapital•  Whatisyourcapitalstructure?

Equity100%

Equity83%

Debt17%

Equity45%

Debt55%

CapitalStructureandCostofCapital•  Whatisthecostofcapital?

Equity83%

Debt17%

CostofEquity:Re

CostofDebt:Rd

CapitalStructureandCostofCapital•  WeightedAverageCostofCapital(WACC)•  TheWACCofcompanyshowusthepoten(alofcompe((venesswithrivals!

•  HighWACCmeansyouneedHighMarginandHighIRRrangeprojects.

•  Isitgoodforyou?

CapitalStructureandCostofCapital

CapitalStructureandCostofCapital

CapitalStructureandCostofCapital

CapitalStructureandCostofCapital

CapitalStructureandCostofCapital

WhatistheIraniancompanies’WACC?Whataboutyourbusiness?HowaboutAustralianorBrazilianRivals?

CapitalStructureandCostofCapital

GlencorePLCWACC

BHPWACC

RioRintoWACC

CHINASHEHUMAWACC

OurFutureandWACC•  Myownmoney?•  Domes(cFinance?•  Interna(onalFinance?•  Domes(cInvestment?•  Interna(onalInvestment?•  MergersandAcquisi(on?Domes(cofInterna(onal

Thankyou