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1. Compute for Enterprise Value 2. Assuming that the net debt and preferred shares are 800 and 60, respectively, calculate the equity value: 3. Assuming that there are 50 shares outstanding, calculate the intrinsic value per share: *

1. Compute for Enterprise Value 2. Assuming that the net debt and preferred shares are 800 and 60, respectively, calculate the equity value: 3. Assuming that there are 50 shares outstanding, calculate the intrinsic value per share: *

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. Compute for Enterprise Value

2. Assuming that the net debt and preferred shares are 800 and 60, respectively, calculate the equity value:

3. Assuming that there are 50 shares outstanding, calculate the intrinsic value per share: *

Historical 2017 Sales Operating Cost Depreciation 3300 2871 116.6 312.4 304.1 EBIT EBT + DEP Net fixed assets NWOC Total Operating Capital Net CAPEX 1080 864 1944 80 CAPEX Change in NWOC 196.6 64 FCF 43.4 PV of FCF 39.5
Transcribed Image Text:Historical 2017 Sales Operating Cost Depreciation 3300 2871 116.6 312.4 304.1 EBIT EBT + DEP Net fixed assets NWOC Total Operating Capital Net CAPEX 1080 864 1944 80 CAPEX Change in NWOC 196.6 64 FCF 43.4 PV of FCF 39.5
Forecasted Years 2018 2019 2020 2021 Sales grwoth rate Operating costs as a % of sales Growth in net fixed asset Growth in NOWC Depreciation as a % of operating capital Tax Rate WACC Long-run FCF growth 9% 9% 9% 8% 86% 85% 8% 87% 85% 8% 8% 8% 8% 7% 40% 8% 8% 8% 8% 7% 7% 40% 40% 40% 10% 10% 10% 10% 6% 6% 6% 6%
Transcribed Image Text:Forecasted Years 2018 2019 2020 2021 Sales grwoth rate Operating costs as a % of sales Growth in net fixed asset Growth in NOWC Depreciation as a % of operating capital Tax Rate WACC Long-run FCF growth 9% 9% 9% 8% 86% 85% 8% 87% 85% 8% 8% 8% 8% 7% 40% 8% 8% 8% 8% 7% 7% 40% 40% 40% 10% 10% 10% 10% 6% 6% 6% 6%
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