Professional Documents
Culture Documents
Cases 1,2,4,5,7
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Output area:
2004
84,310
12,165
23,800
5,180
16,580
21,500
105,000
165,390
8,620
9,800
53,000
18,140
20%
30%
2005
106,450
18,380
26,900
5,930
21,640
24,350
134,000
201,600
11,182
10,700
61,000
24,894
10,000
Cash
Accounts receivable
Inventory
Current assets
Net fixed assets
Total assets
Cash
Accounts receivable
Inventory
Current assets
2004
57,396
2005
65,374
$
$
21,500
9,800
31,300
$
53,000
$
59,625
$ 143,925
$
$
24,350
10,700
35,050
$
61,000
$
92,406
$ 188,456
Capital Spending
Ending net fixed assets
- Beginning net fixed assets
+ Depreciation
Net capital spending
134,000
105,000
26,900
55,900
19,406
7,625
11,781
65,374
55,900
11,781
(2,307)
$
$
$
$
5,930
8,000
(2,070)
9,763
10,000
(237)
Sales
COGS
Other expenses
Depreciation
EBIT
Interest
Taxable income
Taxes (40%)
Net income
$ 12,870,000
$ 9,070,000
$ 1,538,000
$
420,000
$ 1,842,000
$
231,500
$ 1,610,500
$
644,200
$
966,300
Dividends
Add to RE
$
$
289,890
676,410
Assets
Current Assets
Cash
Accounts rec.
Inventory
Total CA
Fixed assets
Net PP&E
$
$
$
$
234,000
421,000
472,000
1,127,000
7,228,000
Total Assets
8,355,000
Growth rate
Minimum FA purchase
20%
3,000,000
Output area:
Current ratio
Quick ratio
Cash ratio
Total asset turnover
Inventory turnover
Receivables turnover
Total debt ratio
Debt-equity ratio
Equity multiplier
Times interest earned
Cash coverage ratio
Profit margin
Return on assets
Return on equity
0.75
0.44
0.16
1.54
19.22
30.57
0.49
0.96
1.96
7.96
9.77
7.51%
11.57%
22.70%
Retention ratio
Internal growth rate
Sustainable growth rate
0.70
8.81%
18.89%
Sales
COGS
Other expenses
$ 15,444,000
$ 10,884,000
$ 1,845,600
2,595,000
Shareholder Equity
Common stock
Retained earnings
Total Equity
$
$
$
100,000
4,157,000
4,257,000
Total L&E
8,355,000
Depreciation
EBIT
Interest
Taxable income
Taxes (40%)
Net income
$
$
$
$
$
$
420,000
2,294,400
231,500
2,062,900
825,160
1,237,740
Dividends
Add to RE
$
$
371,322
866,418
Assets
Current Assets
Cash
Accounts rec.
Inventory
Total CA
$
$
$
$
Fixed assets
Net PP&E
280,800
505,200
566,400
1,352,400
8,673,600
Total Assets
$ 10,026,000
EFN
Assets
Fixed assets
Net PP&E
$
$
$
$
Long-term debt
2,595,000
Shareholder Equity
Common stock
Retained earnings
Total Equity
$
$
$
100,000
5,023,418
425,700
Total L&E
4,623,100
5,402,900
Current Assets
Cash
Accounts rec.
Inventory
Total CA
280,800
505,200
566,400
1,352,400
$ 10,228,000
Total Assets
$ 11,580,400
EFN
6,957,300
$ 3,000,000
Liabilities & Equity
Current Liabilities
Accounts Payable $
596,400
Notes Payable
$
1,006,000
Total CL
$
1,602,400
Long-term debt
2,595,000
Shareholder Equity
Common stock
Retained earnings
Total Equity
$
$
$
100,000
5,023,418
425,700
Total L&E
4,623,100
Equipment
Salvage value
R&D
Marketing study
Sales(units)
Depreciation rate
Sales of old PDA
Lost sales
Price
VC
FC
Price of old PDA
Price reduction
of old PDA
VC of old PDA
Tax rate
NWC percentage
Required return
Sensivity analysis
New price
Quantity change
$15,000,000
$3,000,000
$750,000
$200,000
sunk cost
sunk cost
Year 1
70,000
14.29%
80,000
15,000
Year 2
80,000
24.49%
60,000
15,000
Year 3
100,000
17.49%
$250
$86
$3,000,000
$240
$20
$68
35%
20%
12%
$260
100 NOTE: Change in units per year
Output Area:
Sales
New
Lost sales
Lost rev.
Net sales
Year 1
$17,500,000
3,600,000
1,300,000
$12,600,000
Year 2
$20,000,000
3,600,000
900,000
$15,500,000
Year 3
$25,000,000
VC
New
Lost sales
$6,020,000
1,020,000
$6,880,000
1,020,000
$8,600,000
$25,000,000
$5,000,000
$5,860,000
$8,600,000
Sales
VC
Fixed costs
Dep
EBT
Tax
NI
+Dep
OCF
$12,600,000
5,000,000
3,000,000
2,143,500
$2,456,500
859,775
$1,596,725
2,143,500
$3,740,225
$15,500,000
5,860,000
3,000,000
3,673,500
$2,966,500
1,038,275
$1,928,225
3,673,500
$5,601,725
$25,000,000
8,600,000
3,000,000
2,623,500
$10,776,500
3,771,775
$7,004,725
2,623,500
$9,628,225
NWC
Beg
End
NWC CF
$0
2,520,000
($2,520,000)
Net CF
Salvage
BV of equipment
Taxes
Salvage CF
Net CF
$1,220,225
$2,520,000
3,100,000
($580,000)
$5,021,725
$3,100,000
5,000,000
($1,900,000)
$7,728,225
$3,346,500
121,275
$3,121,275
Time
0
1
2
3
4
5
Payback period
PI
IRR
NPV
($15,000,000)
$1,220,225
$5,021,725
$7,728,225
$8,516,725
$13,885,100
3.121
1.592
27.79%
$8,884,884.28
Year 1
$18,200,000
3,600,000
Year 2
$20,800,000
3,600,000
Year 3
$26,000,000
Lost rev.
Net sales
1,300,000
$13,300,000
900,000
$16,300,000
$6,020,000
1,020,000
$5,000,000
$6,880,000
1,020,000
$5,860,000
$8,600,000
Sales
VC
Fixed costs
Dep
EBT
Tax
NI
+Dep
OCF
$13,300,000
5,000,000
3,000,000
2,143,500
$3,156,500
1,104,775
$2,051,725
2,143,500
$4,195,225
$16,300,000
5,860,000
3,000,000
3,673,500
$3,766,500
1,318,275
$2,448,225
3,673,500
$6,121,725
$26,000,000
8,600,000
3,000,000
2,623,500
$11,776,500
4,121,775
$7,654,725
2,623,500
$10,278,225
NWC
Beg
End
NWC CF
$0
2,660,000
($2,660,000)
VC
New
Lost sales
Net CF
Salvage
BV of equipment
Taxes
Salvage CF
Net CF
$1,535,225
$2,660,000
3,260,000
($600,000)
$5,521,725
$3,346,500
121,275
$3,121,275
Time
0
1
2
3
4
5
NPV
DNPV/DP
Sensitivity to change in quantity
($15,000,000)
$1,535,225
$5,521,725
$8,338,225
$9,099,225
$14,542,600
$10,742,189.61
$185,730.53
$26,000,000
$8,600,000
$3,260,000
5,200,000
($1,940,000)
$8,338,225
Sales
New
Lost sales
Lost rev.
Net sales
Year 1
$17,525,000
3,600,000
1,300,000
$12,625,000
Year 2
$20,025,000
3,600,000
900,000
$15,525,000
Year 3
$25,025,000
$6,028,600
1,020,000
$5,008,600
$6,888,600
1,020,000
$5,868,600
$8,608,600
Sales
VC
Fixed costs
Dep
EBT
Tax
NI
+Dep
OCF
$12,625,000
5,008,600
3,000,000
2,143,500
$2,472,900
865,515
$1,607,385
2,143,500
$3,750,885
$15,525,000
5,868,600
3,000,000
3,673,500
$2,982,900
1,044,015
$1,938,885
3,673,500
$5,612,385
$25,025,000
8,608,600
3,000,000
2,623,500
$10,792,900
3,777,515
$7,015,385
2,623,500
$9,638,885
NWC
Beg
End
NWC CF
$0
2,525,000
($2,525,000)
VC
New
Lost sales
Net CF
Salvage
BV of equipment
Taxes
Salvage CF
Net CF
NPV
$1,225,885
$2,525,000
3,105,000
($580,000)
$5,032,385
$3,346,500
121,275
$3,121,275
Time
0
1
2
3
4
5
($15,000,000)
$1,225,885
$5,032,385
$7,738,885
$8,527,385
$13,900,760
$8,921,684.04
$25,025,000
$8,608,600
$3,105,000
5,005,000
($1,900,000)
$7,738,885
DNPV/DQ
$368.00
Year 4
85,000
12.49%
Year 5
75,000
8.93%
Year 4
$21,250,000
Year 5
$18,750,000
$21,250,000
$18,750,000
$7,310,000
$6,450,000
$7,310,000
$6,450,000
$21,250,000
7,310,000
3,000,000
1,873,500
$9,066,500
3,173,275
$5,893,225
1,873,500
$7,766,725
$18,750,000
6,450,000
3,000,000
1,339,500
$7,960,500
2,786,175
$5,174,325
1,339,500
$6,513,825
$5,000,000
4,250,000
$750,000
$4,250,000
0
$4,250,000
$8,516,725
$10,763,825
Year 4
$22,100,000
Year 5
$19,500,000
$22,100,000
$19,500,000
$7,310,000
$6,450,000
$7,310,000
$6,450,000
$22,100,000
7,310,000
3,000,000
1,873,500
$9,916,500
3,470,775
$6,445,725
1,873,500
$8,319,225
$19,500,000
6,450,000
3,000,000
1,339,500
$8,710,500
3,048,675
$5,661,825
1,339,500
$7,001,325
$5,200,000
4,420,000
$780,000
$9,099,225
$4,420,000
0
$4,420,000
$11,421,325
Year 4
$21,275,000
Year 5
$18,775,000
$21,275,000
$18,775,000
$7,318,600
$6,458,600
$7,318,600
$6,458,600
$21,275,000
7,318,600
3,000,000
1,873,500
$9,082,900
3,179,015
$5,903,885
1,873,500
$7,777,385
$18,775,000
6,458,600
3,000,000
1,339,500
$7,976,900
2,791,915
$5,184,985
1,339,500
$6,524,485
$5,005,000
4,255,000
$750,000
$8,527,385
$4,255,000
0
$4,255,000
$10,779,485
Industry PE
Company EPS
Conversion price (stock)
Maturity (years)
Convertible bond coupon
Conversion value of bond
Plain vanilla coupon
$
$
$
$
12.50
1.60
25.00
20.00
6%
800
10%
Output area:
Stock price
20.00
$656.82
Floor value
$800.00
Conversion ratio
Conversion premium
32.00
25.00%
$
$
$
$
$
$
200
300
505
6,280
35.05
87,510
2.50
$
1.677
1.60%
8.60%
109.575
117.978
3.645087%
5.702993%
35%
Output area:
kE from CAPM
16.02%
Bond 1
Bond 2
Total
Book value
(millions)
$
200
300
$
500
$
$
Percent
Market value
of total
(millions)
0.40 $
219.15
0.60
353.93
1.00 $
573.08
6,785 million
88,083.08 million
15.07%
15.94%
er, Inc.
Percent Yield to
Book
Market
of total Maturity values values
0.38
3.65% 1.46% 1.39%
0.62
5.70% 3.42% 3.52%
1.00
4.88% 4.92%
2
3
4
Input Area:
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
0% / 10
25%
0% / 15
net
45
net
40
695,000
Q2
708,000
Q3
741,000
Q4
757,000
$
$
708,000.00
370,500.00
$
$
741,000.00
378,500.00
$
$
757,000.00
392,000.00
28
29
30
Output Area:
31
32
33
34
$
$
695,000.00
354,000.00
$
$
$
$
29,311.11
76,983.33
76,061.11
(151,433.33)
35
36
37
38
39
784,000
426,000
10%
57
50%
53
25%
85,000
240,000
164,000
100,000
1.5%
1.0%
-
Q1
Gross sales
A
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
Q1:
Q2:
Q3:
Q4:
$
$
$
$
Q1
164,000.00
29,311.11
193,311.11
100,000.00
93,311.11
64,000.00
93,951.11
$64,000.00
$93,951.11
$171,873.96
$249,653.81
640.00
939.51
1,718.74
2,496.54
5,794.79
0.00%
0.00%
79
80
81
$
$
$
Q2
193,311.11
76,983.33
270,294.44
100,000.00
170,294.44
$
$
$
77
78
Cash Balance
93,951.11
171,873.96
earns
earns
earns
earns
Q3
270,294.44
76,061.11
346,355.56
100,000.00
246,355.56
Q4
346,355.56
(151,433.33)
194,922.22
100,000.00
94,922.22
100,000.00 $
76,061.11
(77,779.85)
1,718.74
100,000.00 $
(100,000.00)
$
100,000.00
(151,433.33)
2,496.54
148,936.80
100,000.00
(100,000.00)
-
171,873.96
249,653.81
$640.00
$939.51
$1,718.74
$2,496.54
$
$
249,653.81
100,717.01
-
in income.
in income.
in income.
in income.
I
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
I
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81