CourseLover

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About CourseLover

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Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
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  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

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  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Business & Finance Posted 14 Dec 2017 My Price 10.00

Problem 8-12 Mini-Case Dicks Sporting Goods IPO

Problem 8-12 Mini-Case Dicks Sporting Goods IPO


Dick's Sporting Goods IPO Given Shares outstanding 9.40 million Offering Price 10/16/02 $12.25 Exhibit P8-12.3 Dick's Sporting Goods Financial Data ($ millions) Revenues $1,173.794 Gross Profit $298.453 EBIT $55.899 Depreciation & Amortization $13.499 EBITDA $69.398 Balance Sheet Data 8/3/02 Checks Drawn $33.584 Current Portion of Long Term Debt $0.211 Revolving Bank Line of Credit $90.299 Long Term Debt & Capital Leases $3.466 Total Debt $127.560 Cash $13.874 Stockholder's Equity $78.984 Debt/Capitalization Debt/EBITDA Source: Dick's Sporting Goods Prospectus S-1 dated September 27, 2002 Solution A. Implied Enterprise Valuation for DKS Based on Market Comparables Average Comps DKS Statistic Implied EV Revenue Multiple 0.37x $1,173.794 EBITDA Multiple 5.20x $69.398 EBIT Multiple 8.30x $55.899 B. Determine DKS' Implied Equity Value by subtracting Net Debt Revenue Multiple EBITDA Multiple EBIT Multiple DKS Net Debt Discount to Comps EV/Revenue Multiple EV/EBITDA Multiple EV/EBIT Multiple Implied Enterprise Value DKS Net Debt Implied Equity Value Implied IPO Value Per Share Equity Market Capitalization based on 9.4 million shares DKS Enterprise Value at IPO actual price of $12.25 Implied Multiple based on IPO Price Analysis: This represents the balance of checks written that have not cleared the firm's bank account.
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CourseLover
(12)
Status NEW Posted 14 Dec 2017 03:12 PM My Price 10.00

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