Chat with AI
Deck 19: Valuation and Financial Modeling: a Case Study
Full screen (f)
Question
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2007?
A) 1,505 units
B) 1,323 units
C) 1,914 units
D) 1,115 units
E) 1,702 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2007?
A) 1,505 units
B) 1,323 units
C) 1,914 units
D) 1,115 units
E) 1,702 units
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Question
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2009?
A) 1,505 units
B) 1,115 units
C) 1,323 units
D) 1,702 units
E) 1,914 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2009?
A) 1,505 units
B) 1,115 units
C) 1,323 units
D) 1,702 units
E) 1,914 units
Question
Use the following information to answer the question(s) below:
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Question
Use the following information to answer the question(s) below:
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2009 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2009 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $155 million
B) $157 million
C) $165 million
D) $191 million
E) $193 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $155 million
B) $157 million
C) $165 million
D) $191 million
E) $193 million
Question
Use the following information to answer the question(s) below: 
The after tax interest expense in 2010 is closest to:
A) 0
B) 2,856
C) 5,304
D) 8,160
E) 11,016
The after tax interest expense in 2010 is closest to:
A) 0
B) 2,856
C) 5,304
D) 8,160
E) 11,016
Question
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2008?
A) 1,702 units
B) 1,323 units
C) 1,505 units
D) 1,914 units
E) 1,115 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2008?
A) 1,702 units
B) 1,323 units
C) 1,505 units
D) 1,914 units
E) 1,115 units
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $165 million
D) $157 million
E) $193 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $165 million
D) $157 million
E) $193 million
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Question
Use the following information to answer the question(s) below:
The free cash flow to equity in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 9,995
E) 14,995
The free cash flow to equity in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 9,995
E) 14,995
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $165 million
B) $157 million
C) $193 million
D) $191 million
E) $155 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $165 million
B) $157 million
C) $193 million
D) $191 million
E) $155 million
Question
Use the following information to answer the question(s) below:
The free cash flow to equity in 2010 is closest to:
A) 6,255
B) 10,684
C) 11,559
D) 18,394
E) 19,269
The free cash flow to equity in 2010 is closest to:
A) 6,255
B) 10,684
C) 11,559
D) 18,394
E) 19,269
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $157 million
D) $193 million
E) $165 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $157 million
D) $193 million
E) $165 million
Question
Use the following information to answer the question(s) below:
The after tax interest expense in 2008 is closest to:
A) 2,380
B) 4,420
C) 6,800
D) 7,820
E) 9,180
The after tax interest expense in 2008 is closest to:
A) 2,380
B) 4,420
C) 6,800
D) 7,820
E) 9,180
Question
Use the following information to answer the question(s) below:
The free cash flow to the firm in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 14,995
E) 18,245
The free cash flow to the firm in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 14,995
E) 18,245
Question
Use the following information to answer the question(s) below:
The free cash flow to the firm in 2010 is closest to:
A) 10,684
B) 11,559
C) 23,698
D) 26,394
E) 31,698
The free cash flow to the firm in 2010 is closest to:
A) 10,684
B) 11,559
C) 23,698
D) 26,394
E) 31,698
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A) $157 million
B) $155 million
C) $193 million
D) $165 million
E) $191 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A) $157 million
B) $155 million
C) $193 million
D) $165 million
E) $191 million
Question
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A) 84 days
B) 95 days
C) 90 days
D) 75 days
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A) 84 days
B) 95 days
C) 90 days
D) 75 days
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2008 is closest to:
A) $4,685
B) $3,665
C) $4,090
D) $5,230
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2008 is closest to:
A) $4,685
B) $3,665
C) $4,090
D) $5,230
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2008 is closest to:
A) $35,195
B) $26,420
C) $22,170
D) $30,510
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2008 is closest to:
A) $35,195
B) $26,420
C) $22,170
D) $30,510
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2006 is closest to:
A) $22,750
B) $35,195
C) $30,510
D) $26,420
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2006 is closest to:
A) $22,750
B) $35,195
C) $30,510
D) $26,420
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2006 is closest to:
A) $19,690
B) $16,970
C) 22,710
D) $14,525
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2006 is closest to:
A) $19,690
B) $16,970
C) 22,710
D) $14,525
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2008 is closest to:
A) $14,525
B) $19,690
C) 22,710
D) $16,970
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2008 is closest to:
A) $14,525
B) $19,690
C) 22,710
D) $16,970
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A) 0.70
B) 1.00
C) 1.50
D) 0.60
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A) 0.70
B) 1.00
C) 1.50
D) 0.60
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A) 14.7%
B) 10.2%
C) 9.1%
D) 13.5%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A) 14.7%
B) 10.2%
C) 9.1%
D) 13.5%
Question
Use the following information to answer the question(s) below: 
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:
A) 164,200
B) 278,775
C) 280,450
D) 303,425
E) 482,850
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:
A) 164,200
B) 278,775
C) 280,450
D) 303,425
E) 482,850
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2007 is closest to:
A) $4,090
B) $4,685
C) $3,665
D) $5,230
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2007 is closest to:
A) $4,090
B) $4,685
C) $3,665
D) $5,230
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A) 0.70
B) 1.50
C) 1.00
D) 0.60
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A) 0.70
B) 1.50
C) 1.00
D) 0.60
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A) $181.7 million
B) $272.8 million
C) $152.8 million
D) $301.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A) $181.7 million
B) $272.8 million
C) $152.8 million
D) $301.7 million
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $152.8 million
B) $272.8 million
C) $301.7 million
D) $181.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $152.8 million
B) $272.8 million
C) $301.7 million
D) $181.7 million
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A) 1.00
B) 0.60
C) 0.70
D) 1.50
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A) 1.00
B) 0.60
C) 0.70
D) 1.50
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2007 is closest to:
A) $30,510
B) $26,420
C) $22,170
D) $35,195
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2007 is closest to:
A) $30,510
B) $26,420
C) $22,170
D) $35,195
Question
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:
A) $14,525
B) $16,970
C) 22,710
D) $19,690
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:
A) $14,525
B) $16,970
C) 22,710
D) $19,690
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A) 13.5%
B) 10.2%
C) 9.1%
D) 14.7%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A) 13.5%
B) 10.2%
C) 9.1%
D) 14.7%
Question
Use the following information to answer the question(s) below:
If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:
A) 6,568
B) 11,151
C) 11,218
D) 12,137
E) 19,314
If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:
A) 6,568
B) 11,151
C) 11,218
D) 12,137
E) 19,314
Question
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A) 10.2%
B) 13.5%
C) 9.1%
D) 14.7%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A) 10.2%
B) 13.5%
C) 9.1%
D) 14.7%
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.9
B) 1.7
C) 1.6
D) 1.8
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.9
B) 1.7
C) 1.6
D) 1.8
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
What is the purpose of the sensitivity analysis?
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010What is the purpose of the sensitivity analysis?
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $181.7 million
B) $152.8 million
C) $272.8 million
D) $301.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $181.7 million
B) $152.8 million
C) $272.8 million
D) $301.7 million
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 14.5
C) 19.0
D) 16.4
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 14.5
C) 19.0
D) 16.4
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 16.4
C) 14.5
D) 19.4
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 16.4
C) 14.5
D) 19.4
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.7
B) 1.9
C) 1.6
D) 1.8
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.7
B) 1.9
C) 1.6
D) 1.8
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.6
B) 16.4
C) 14.5
D) 19.0
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.6
B) 16.4
C) 14.5
D) 19.0
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 19.0
B) 17.2
C) 16.4
D) 14.5
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 19.0
B) 17.2
C) 16.4
D) 14.5
Question
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A) $152.8 million
B) $181.7 million
C) $301.7 million
D) $272.8 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A) $152.8 million
B) $181.7 million
C) $301.7 million
D) $272.8 million
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/49
Play
Full screen (f)
Deck 19: Valuation and Financial Modeling: a Case Study
1
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2007?
A) 1,505 units
B) 1,323 units
C) 1,914 units
D) 1,115 units
E) 1,702 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2007?
A) 1,505 units
B) 1,323 units
C) 1,914 units
D) 1,115 units
E) 1,702 units
1,323 units
2
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Low EV/EBITDA (Nike)= 9.3
Low EV = EBITDA × EV/EBITDA = $16.25 million × 9.3 = $151.13 million
Low EV = Equity + Debt - Cash in excess of NWC needs
Low Equity Price = EV - Debt + cash in excess of NWC needs = $151.13 - $4.5 + $6.5 = $153.13 million
High EV/EBITDA (Luxottica)= 14.4
High EV = EBITDA × EV/EBITDA = $16.25 million × 14.4 = $234.00 million
High EV = Equity + Debt - Cash in excess of NWC needs
High Equity Price = EV - Debt + cash in excess of NWC needs = $234.00 - $4.5 + $6.5 = $236.00 million
Low EV = EBITDA × EV/EBITDA = $16.25 million × 9.3 = $151.13 million
Low EV = Equity + Debt - Cash in excess of NWC needs
Low Equity Price = EV - Debt + cash in excess of NWC needs = $151.13 - $4.5 + $6.5 = $153.13 million
High EV/EBITDA (Luxottica)= 14.4
High EV = EBITDA × EV/EBITDA = $16.25 million × 14.4 = $234.00 million
High EV = Equity + Debt - Cash in excess of NWC needs
High Equity Price = EV - Debt + cash in excess of NWC needs = $234.00 - $4.5 + $6.5 = $236.00 million
3
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2009?
A) 1,505 units
B) 1,115 units
C) 1,323 units
D) 1,702 units
E) 1,914 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2009?
A) 1,505 units
B) 1,115 units
C) 1,323 units
D) 1,702 units
E) 1,914 units
1,702 units
4
Use the following information to answer the question(s) below:
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
5
Use the following information to answer the question(s) below:
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2009 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Ideko's Planned Debt
If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2009 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
6
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $155 million
B) $157 million
C) $165 million
D) $191 million
E) $193 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $155 million
B) $157 million
C) $165 million
D) $191 million
E) $193 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
7
Use the following information to answer the question(s) below:
The after tax interest expense in 2010 is closest to:
A) 0
B) 2,856
C) 5,304
D) 8,160
E) 11,016
The after tax interest expense in 2010 is closest to:
A) 0
B) 2,856
C) 5,304
D) 8,160
E) 11,016
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
8
Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2008?
A) 1,702 units
B) 1,323 units
C) 1,505 units
D) 1,914 units
E) 1,115 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity will Ideko require in 2008?
A) 1,702 units
B) 1,323 units
C) 1,505 units
D) 1,914 units
E) 1,115 units
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
9
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $165 million
D) $157 million
E) $193 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $165 million
D) $157 million
E) $193 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
10
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
11
Use the following information to answer the question(s) below:
The free cash flow to equity in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 9,995
E) 14,995
The free cash flow to equity in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 9,995
E) 14,995
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
12
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $165 million
B) $157 million
C) $193 million
D) $191 million
E) $155 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A) $165 million
B) $157 million
C) $193 million
D) $191 million
E) $155 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
13
Use the following information to answer the question(s) below:
The free cash flow to equity in 2010 is closest to:
A) 6,255
B) 10,684
C) 11,559
D) 18,394
E) 19,269
The free cash flow to equity in 2010 is closest to:
A) 6,255
B) 10,684
C) 11,559
D) 18,394
E) 19,269
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
14
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $157 million
D) $193 million
E) $165 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A) $191 million
B) $155 million
C) $157 million
D) $193 million
E) $165 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
15
Use the following information to answer the question(s) below:
The after tax interest expense in 2008 is closest to:
A) 2,380
B) 4,420
C) 6,800
D) 7,820
E) 9,180
The after tax interest expense in 2008 is closest to:
A) 2,380
B) 4,420
C) 6,800
D) 7,820
E) 9,180
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
16
Use the following information to answer the question(s) below:
The free cash flow to the firm in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 14,995
E) 18,245
The free cash flow to the firm in 2008 is closest to:
A) -5,005
B) -1,755
C) 5,575
D) 14,995
E) 18,245
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
17
Use the following information to answer the question(s) below:
The free cash flow to the firm in 2010 is closest to:
A) 10,684
B) 11,559
C) 23,698
D) 26,394
E) 31,698
The free cash flow to the firm in 2010 is closest to:
A) 10,684
B) 11,559
C) 23,698
D) 26,394
E) 31,698
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
18
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
19
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:
Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A) $157 million
B) $155 million
C) $193 million
D) $165 million
E) $191 million
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A) $157 million
B) $155 million
C) $193 million
D) $165 million
E) $191 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
20
Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A) 84 days
B) 95 days
C) 90 days
D) 75 days
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A) 84 days
B) 95 days
C) 90 days
D) 75 days
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
21
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2008 is closest to:
A) $4,685
B) $3,665
C) $4,090
D) $5,230
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2008 is closest to:
A) $4,685
B) $3,665
C) $4,090
D) $5,230
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
22
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2008 is closest to:
A) $35,195
B) $26,420
C) $22,170
D) $30,510
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2008 is closest to:
A) $35,195
B) $26,420
C) $22,170
D) $30,510
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
23
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2006 is closest to:
A) $22,750
B) $35,195
C) $30,510
D) $26,420
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2006 is closest to:
A) $22,750
B) $35,195
C) $30,510
D) $26,420
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
24
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2006 is closest to:
A) $19,690
B) $16,970
C) 22,710
D) $14,525
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2006 is closest to:
A) $19,690
B) $16,970
C) 22,710
D) $14,525
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
25
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2008 is closest to:
A) $14,525
B) $19,690
C) 22,710
D) $16,970
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2008 is closest to:
A) $14,525
B) $19,690
C) 22,710
D) $16,970
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
26
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A) 0.70
B) 1.00
C) 1.50
D) 0.60
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A) 0.70
B) 1.00
C) 1.50
D) 0.60
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
27
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A) 14.7%
B) 10.2%
C) 9.1%
D) 13.5%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A) 14.7%
B) 10.2%
C) 9.1%
D) 13.5%
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
28
Use the following information to answer the question(s) below:
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:
A) 164,200
B) 278,775
C) 280,450
D) 303,425
E) 482,850
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:
A) 164,200
B) 278,775
C) 280,450
D) 303,425
E) 482,850
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
29
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2007 is closest to:
A) $4,090
B) $4,685
C) $3,665
D) $5,230
Pro Forma Income Statement for Ideko, 2005-2010
The amount of the increase in net working capital for Ideko in 2007 is closest to:
A) $4,090
B) $4,685
C) $3,665
D) $5,230
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
30
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
31
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A) 0.70
B) 1.50
C) 1.00
D) 0.60
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A) 0.70
B) 1.50
C) 1.00
D) 0.60
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
32
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Pro Forma Income Statement for Ideko, 2005-2010
Using the income statement above and the following information:
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
33
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A) $181.7 million
B) $272.8 million
C) $152.8 million
D) $301.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A) $181.7 million
B) $272.8 million
C) $152.8 million
D) $301.7 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
34
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $152.8 million
B) $272.8 million
C) $301.7 million
D) $181.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $152.8 million
B) $272.8 million
C) $301.7 million
D) $181.7 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
35
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A) 1.00
B) 0.60
C) 0.70
D) 1.50
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A) 1.00
B) 0.60
C) 0.70
D) 1.50
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
36
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2007 is closest to:
A) $30,510
B) $26,420
C) $22,170
D) $35,195
Pro Forma Income Statement for Ideko, 2005-2010
The amount of net working capital for Ideko in 2007 is closest to:
A) $30,510
B) $26,420
C) $22,170
D) $35,195
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
37
Use the table for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:
A) $14,525
B) $16,970
C) 22,710
D) $19,690
Pro Forma Income Statement for Ideko, 2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:
A) $14,525
B) $16,970
C) 22,710
D) $19,690
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
38
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A) 13.5%
B) 10.2%
C) 9.1%
D) 14.7%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A) 13.5%
B) 10.2%
C) 9.1%
D) 14.7%
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
39
Use the following information to answer the question(s) below:
If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:
A) 6,568
B) 11,151
C) 11,218
D) 12,137
E) 19,314
If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:
A) 6,568
B) 11,151
C) 11,218
D) 12,137
E) 19,314
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
40
Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A) 10.2%
B) 13.5%
C) 9.1%
D) 14.7%
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A) 10.2%
B) 13.5%
C) 9.1%
D) 14.7%
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
41
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.9
B) 1.7
C) 1.6
D) 1.8
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.9
B) 1.7
C) 1.6
D) 1.8
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
42
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
What is the purpose of the sensitivity analysis?
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010What is the purpose of the sensitivity analysis?
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
43
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $181.7 million
B) $152.8 million
C) $272.8 million
D) $301.7 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A) $181.7 million
B) $152.8 million
C) $272.8 million
D) $301.7 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
44
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 14.5
C) 19.0
D) 16.4
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 14.5
C) 19.0
D) 16.4
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
45
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 16.4
C) 14.5
D) 19.4
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.2
B) 16.4
C) 14.5
D) 19.4
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
46
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.7
B) 1.9
C) 1.6
D) 1.8
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A) 1.7
B) 1.9
C) 1.6
D) 1.8
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
47
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.6
B) 16.4
C) 14.5
D) 19.0
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 17.6
B) 16.4
C) 14.5
D) 19.0
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
48
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 19.0
B) 17.2
C) 16.4
D) 14.5
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A) 19.0
B) 17.2
C) 16.4
D) 14.5
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
49
Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010
Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A) $152.8 million
B) $181.7 million
C) $301.7 million
D) $272.8 million
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A) $152.8 million
B) $181.7 million
C) $301.7 million
D) $272.8 million
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
